How Much Is 10% Retainage on a $120,000 Contract?
Retainage held at 10%
$12,000.00
10% retainage, shown at 100% completion so the figure is the full amount held by the end of the job.
How that number is worked out
These are the figures this page was built with and every line the calculator produces from them. Change anything above and all of it moves.
- Contract amount120000 $
- Retainage10 %
- Work completed to date100 %
- Already paid to you0 $
Payable on this application$108,000.00
| Contract amount | $120,000.00 |
|---|---|
| Work completed | 100% |
| Earned to date | $120,000.00 |
| Retainage held at 10% | $12,000.00 |
| Less already paid | $0.00 |
| Due on this application | $108,000.00 |
| Retainage held at completion | $12,000.00chase this at closeout |
Work completed compared
Retainage accumulates as the work does, so each progress application leaves a little more of your own money behind.
| Work completed | Payable on this application | Retainage held at 10% | Due on this application |
|---|---|---|---|
| 25% | $27,000.00 | $3,000.00 | $27,000.00 |
| 50% | $54,000.00 | $6,000.00 | $54,000.00 |
| 75% | $81,000.00 | $9,000.00 | $81,000.00 |
| 100% | $108,000.00 | $12,000.00 | $108,000.00 |
What else matters here
A $120,000 contract at 10 percent holds $12,000 and pays $108,000. At the halfway point $6,000 is held and $54,000 has been paid.
On a contract this size the release is rarely refused, it is delayed, and it is almost always delayed by a missing document. The closeout package is the actual key: as built drawings, operation and maintenance manuals, equipment warranties, the certificate of occupancy or final inspection sign off, final lien waivers from you and from every sub and supplier, and a contractor's affidavit where the state or the contract wants one.
Assemble it as the job runs rather than at the end. Collect each sub's final waiver when you pay their final invoice, file the manual for each piece of equipment the day it is installed, and keep the folder in one place. A contractor who hands over a complete package on the day of substantial completion is asking for money that nobody has a reason to hold.
What this calculator assumes
- Retainage is money you have earned that is held back until the job closes out. It is not a discount and it is not a deposit.
- Most states cap retainage on public work, commonly at 5 or 10 percent, and several require it to be released or reduced at substantial completion. Private contracts are freer and often worse.
- Retainage is usually the last money a contractor sees and the first thing forgotten at closeout. Track it separately from the invoice balance.
Questions people ask
How much is 10 percent retainage on a $120,000 contract?
$12,000 held and $108,000 payable, with $6,000 held at the halfway point.
What is in a closeout package?
As builts, operation and maintenance manuals, equipment warranties, the final inspection or occupancy sign off, final lien waivers from every sub and supplier, and an affidavit where one is required.
Why is retainage released late?
Usually because a document is missing rather than because payment is refused. Assembling the closeout package during the job removes the reason for the delay.
The retainage calculator takes any dimensions you like and hands back the same list.