Educational pricing guidance for residential contractors — from the Contractor Authority™ system by P4 One LLC
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Retainage Impact

See how much of your contract — and how much of your PROFIT — retainage locks up until release, before you sign.

Retainage Impact Calculator

Retainage quietly holds back a slice of every invoice until the job closes out. The dollar figure looks small next to the contract — until you compare it to your profit. Run the numbers before you sign.

Held back until release$12,000

This calculator is an educational tool. Results are estimates from the numbers you enter — your real costs and obligations vary.

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FAQ

Why compare retainage to profit instead of to the contract?

Because 10% held on a job you're earning 8% on means your entire profit — plus some of your costs — sits in someone else's account until closeout. Seen against the contract it looks minor; seen against profit it's the whole reason the job strains your cash.

Can retainage terms be negotiated?

Often, yes — reductions after 50% completion, retainage only on labor, or release by phase are all common asks. Know your state's prompt-payment and retainage rules, and price jobs with heavy retainage to carry the wait.

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Contractor Authority™ is a brand of P4 One LLC · SAM Active · CAGE 17SM1 · UEI SW9VDGLV8AY6 · NJ MBE #A0654-63 (Provisional) · NJ SBE #A0704-18 · NJ SEDB #A0704-17