Five to ten percent of every invoice, held for months — retainage is often a subcontractor's entire profit margin sitting in someone else's bank account.
Track it like a receivable
Retainage isn't gone, it's owed. Book it separately from regular AR on every invoice so you always know the total being held, by whom, and since when.
Know your release triggers
- Substantial completion vs. final acceptance — read the contract
- State prompt-payment laws cap how long retainage can be held
- Conditional lien waivers should accompany every retainage bill
Bill for it on time
The single most common retainage loss is never invoicing for it. Calendar the trigger dates and bill the day they hit.
