Glossary
Retainage
Retainage is a percentage of each payment withheld by the customer until the work is complete and accepted.
Retainage is a percentage of each payment withheld by the customer until the work is complete and accepted.
Retainage is common in commercial and construction contracts, typically 5% to 10% of each progress payment.
It should be tracked separately from overdue invoices, because retained amounts are not late — they are contractually held until completion.