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Contractor glossary

Retainage: Definition for Contractors

A portion of payment (often 5–10%) held back until the job is fully complete, common on larger and commercial work.

What is Retainage?

Retainage. A portion of payment (often 5–10%) held back until the job is fully complete, common on larger and commercial work.

Why it matters to your pricing

Retainage is cash you've earned but haven't collected. Track it, and make closing out the punch list a priority so it's released.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
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