Financial & invoicing terms explained
Retainage
Retainage (retention) holds a percentage of each progress payment until punch list and warranty items close.
Billing
Show retainage held and released each period on progress invoices.
Release
Contracts define release milestones—invoice releases separately from progress.
Cash flow
Model retainage when forecasting—late releases strain subcontractors.
Retainage — FAQ
- Retainage release?
- Contract defines milestones—invoice releases separately.
- Tax on retainage?
- Follow local construction tax guidance.
- Disputes?
- Document punch list completion before final release.