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.

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