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Retainage Calculator

Retainage

How to bill retainage on a G702-style form

Retainage is cumulative. Recalculating it from this period only is the most common reason a GC’s spreadsheet stops matching yours.

On each application, retainage withheld this period is usually (work this period + stored materials, if retained) × the contract rate. That amount adds to the retainage already held. The G702 cover shows the running total, not just this month’s slice.

Carry last month forward

Previous certificates for payment (Line 7) must equal what was certified before. Do not type a new “prior billed” number from memory. If Column D this month is not Column G from last month, the current payment due is already wrong. That is the same check as how to fill out G702 and G703.

Step-down at 50% complete

Many contracts cut the rate (10% to 5%) after the job is 50% billed. The reduced rate usually applies to work after the threshold, not retroactively to everything already held. Check the subcontract before you lower Line 5. The retainage calculator has this toggle on.

Release at closeout

When retainage is released, the held amount drops and current payment due includes the release. Confirm your state’s retainage cap and release clock — Florida, Texas, and California are not the same statute. Full list: state retainage laws.

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Questions this page answers

How is retainage calculated on a G702?
Typically a percentage of total completed and stored to date, shown on Line 5. Line 6 is earned less retainage. Current payment due is Line 6 minus previous certificates.
How do I bill retainage on AIA-style G702/G703?
Withhold on each G703 line (or at the job level), roll the total onto G702 Line 5, and keep that total cumulative until release. Do not restart the percentage on this period only.
What retainage rate should I use?
Read the subcontract, then check the state cap. Public work is often 5%. Private work is frequently 10% unless the state caps it (Texas statutory retainage, California 5% on newer private contracts, and others).