Maintaining Contract Retainage

Retainage is a portion of the agreed upon contract price deliberately withheld by the agency until the work is substantially complete to assure that the contractor or subcontractor satisfies the contract and completes the construction project. Retainage can be calculated on the contract as a whole or on individual contract projects.

A retainage record is added to a contract automatically when the contract is saved for the first time with a record source of Construction or when it is transitioned from Preconstruction.

The Retainage tab on the Contract Administration Summary component contains all the retainage information for the contract.

• Note: This tab is only available if your agency has selected the agency option to withhold retainage at the contract level. If your agency withholds retainage at the project level, go to the Retainage tab on the Contract Project Summary.

You can view or change information in these fields on this tab:

• Retainage Percentage

• Retainage Method

• Retainage Base

• Retainage Lump Sum Amount

• Retainage Exempt for Construction Stockpiles

• Retainage Trigger Percentage

• Retainage Trigger Base

• Retainage Maximum Percentage

• Retainage Maximum Dollar Amount

Click in a field and add, change, or delete information as required.

You can enter a value in ether the Retainage Maximum Percentage or Retainage Maximum Dollar Amount fields, but not both. If a default percentage is specified in agency options, the system enters the default in the Retainage Maximum Percentage field, but you can change the percentage if needed.  

Regardless of whether retainage is tracked at the contract or project level, the system releases a contract's cash retainage amount as a positive contract adjustment on the final payment estimate.

Click Save when you are finished to apply your changes to the system. The system displays a message to confirm that your changes were saved in the database.

Related topics:

Retainage Calculations