ContractorHandbook

How Much Is 10% Retainage on a $15,000 Contract?

Retainage held at 10%

$1,500.00

10% retainage, shown at 100% completion so the figure is the full amount held by the end of the job.

Contractwork completedstill to doThis drawalready paidretainage heldearned to date, less retainage, less what has already been paid
Retainage is money you have earned and cannot invoice yet, and it stacks up quietly across a job. The page works out what is payable on this application and what is still sitting behind the retainage line at completion.

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 amount15000 $
  • Retainage10 %
  • Work completed to date100 %
  • Already paid to you0 $

Payable on this application$13,500.00

Contract amount$15,000.00
Work completed100%
Earned to date$15,000.00
Retainage held at 10%$1,500.00
Less already paid$0.00
Due on this application$13,500.00
Retainage held at completion$1,500.00chase 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 completedPayable on this applicationRetainage held at 10%Due on this application
25%$3,375.00$375.00$3,375.00
50%$6,750.00$750.00$6,750.00
75%$10,125.00$1,125.00$10,125.00
100%$13,500.00$1,500.00$13,500.00

What else matters here

A $15,000 contract at 10 percent leaves $1,500 held and $13,500 paid. Halfway through the job $750 is held, and it doubles by the end.

What actually releases that money is the punch list, so treat the punch list as an event rather than a mood. Walk the job with the customer, write the list down in one document on one day, agree what is on it and what is not, and confirm in writing that completing those items completes the contract.

A list that is never written stays open forever, because there is always one more thing a customer can think of when the alternative is paying. A list that is written, signed and closed item by item turns the release into a simple question with a yes or no answer, which is exactly what you want it to be.

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 $15,000 contract?

$1,500 held and $13,500 payable across the job, with $750 held at the halfway point.

What actually triggers the release of retainage?

Completing the punch list, in most contracts. That is why the list needs to be written, agreed and closed rather than left open to additions.

How do I stop a punch list growing?

Walk it once with the customer, write it in a single dated document, and confirm in writing that finishing those items completes the contract.

Different numbers?

The retainage calculator takes any dimensions you like and hands back the same list.

Other common sizes