Retainage you can account for to the dollar.
Preview · works with limits noted below
Retainage receivable on the owner contract and retainage payable on every subcontract are computed from the same pay apps, so both sides come from the same records. Released retainage is billed on the pay app; rate reductions at a threshold are planned.
How it gets done now
Spreadsheets and disconnected tools, each holding part of the same number.
- 01
Retainage receivable lives in the billing spreadsheet, retainage payable lives in the AP system.
- 02
A reduction from 10% to 5% at 50% complete is a note in the contract that someone has to remember.
- 03
At closeout, the team rebuilds months of pay apps to work out what is actually owed to each sub.
- 04
The balance sheet and the job files rarely agree on the first try.
One entry. Everything downstream already knows.
On os.construction the record is shared, not synced. Here is everything Pay App #9 touches, the moment it changes.
- Receivable · ownerHeld to date on the prime contract$3,300,000
- CO #14 lineRetainage on the new SOV line$6,912
- Payable · subsHeld on each sub pay app at its own rateReconciled
- ReleaseQueued for substantial completionTracked
Try it · retainage ladder on a $49.3M contract
- 25% complete
- 50% complete
- 75% complete
- 100% complete
Sample data · illustrative, not tax or legal advice
Sample data · Riverside Medical Center, Job #24-118. An in-browser sketch on sample data, not a screenshot of the app.
What's live and what's planned
1 of 5 are live in the app today. Preview items work with the limits noted. Planned items are not built yet, and the founding cohort helps set the order. See the platform →
- Preview
Held and payable by contract
Retainage receivable by owner contract and payable by subcontract, on every pay app and commitment requisition. A reconciled retainage ledger is next.
- Planned
Rate reductions
Contract terms like "5% after 50% complete" applied when the threshold is crossed.
- Live
Stored materials rate
A separate retainage rate for stored materials where the contract sets one.
- Preview
Release at completion
Release billed on a pay app. Punch and closeout holdbacks are planned.
- Planned
Retainage in the cash forecast
Expected release dates rolled into the week-by-week cash forecast.
Straight answers.
Does it handle retainage reductions?
Not automatically yet. Retainage is held per line on work and stored materials at the rate you set. Applying a reduction when a threshold is crossed (for example 10% until 50% complete, then 5% on the remaining work) is planned. Check your contract and any state retainage law for the exact rule.
Are sub retainage and owner retainage linked?
They're computed from the same records: the owner pay app and each sub pay app for the period. Each side keeps its own rate, so you can see the gap between what the owner holds from you and what you hold from subs.
How is retainage release billed?
Release is billed as its own pay app or line once the release condition is met, usually substantial completion, often net of a holdback for punch list and closeout documents.
Can I use it today?
Yes, in preview: retainage on pay apps and commitment requisitions is live. A reconciled retainage ledger and rate reductions are planned. The free retainage calculator works today too.
Related resources
Terms on this page
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