how to calculate retainage
Retainage is the withholding of a portion of each progress payment earned by a contractor or. subcontractor until a construction project is complete. Retainage is calculated as a percentage of. each progress payment, typically 5% to 10% of the payment. It is routinely called for in both. private and public construction contracts. On public projects, state laws often require the use of. retainage and specify the amount and the conditions for releasing it.