Retainage Release Schedule Calculator

Phased retainage release improves GC cash flow.

Contract value

Initial retainage %

Retainage at 50% complete %

Retainage at SC %

Total saved carry

$72,800

Retainage at 50%

$1,400,000

Retainage at SC

$700,000

How the math works

Retainage values scale with contract × %. Carry savings = reduced amount × cost of capital × time.

$28M × 10% = $2.8M initial. Reduced to 5% = $1.4M at midpoint. Step-down saves ~$85k carry vs straight hold.

How to Use

Enter contract value.
Enter initial retainage %.
Enter reduced retainage at 50% %.
Enter final retainage at SC %.
Read phased amounts.

Frequently Asked Questions

Standard schedule?

10% retainage throughout construction. Reduction to 5% at 50% complete (if performance satisfactory). Full retainage through SC. 5% held to final completion (30-90 days post-SC). Industry variation; negotiable.

Step-down approach?

Phased retainage: 10% at start, 5% at 50% complete, 2.5% at SC, 0% at final completion. Alternative: 10% through SC, then full release. Step-down helps GC cash flow; straight hold tightens owner control.

Why it matters?

On $50M project, 10% retainage = $5M tied up. For 2-year construction at 7% cost of capital, GC pays $700k carry cost. Step-down reduces this by 40-50%. GC bids lower to owners offering better retainage terms.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.