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Subcontractor Retainage Calculator

Retainage holds back 5-10% of each subcontractor progress payment to ensure complete performance and punch-list correction before final payment release. State laws regulate retention rates and timing of release. This calculator computes total retainage, currently held amount, and net paid to date.

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5-10% typical

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Some contracts release at 50%

Total retainage at completion

$35,000

Currently held back

$20,000

Net paid to sub to date

$180,000

Final release at substantial completion

$35,000

How the math works

Retainage holds back 5-10% of each progress payment to ensure the sub completes work and corrects punch list before final payment. Released at substantial completion (some contracts step down to 5% at 50% completion).

Many states regulate retainage — California caps retention at 5%, requires interest on long-held retention. Federal contracts via Miller Act require retention release procedures.

How to Use

  1. Enter sub contract amount and retainage %.
  2. Enter billed-to-date amount.
  3. Enter completion threshold for partial retainage release if applicable.
  4. Read total retainage, currently held, and net paid to date.

Frequently Asked Questions

Standard retainage %?

Most contracts: 10% on first 50% of work, then 5% (step-down). California caps retention at 5%. Federal Miller Act 10% standard. Public works often 10%.

When does retainage release?

Substantial completion (typically 95% complete) triggers initial release; final 25-50% holds back until punch list complete and lien waivers received.

Sub financing of retention?

Subs often borrow against retention at 8-15% — adds 1-3% to their effective bid. Faster retention release (or step-down to 5% at 50%) reduces sub financing need and overall bid pricing.

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