A slice of each payment the customer keeps back until the work is finished and any claim period has passed, then releases. On many jobs it is not a negotiating position but a legal requirement: the percentage, whether it applies at all, how long it is held and what releases it are set by provincial or state statute, and those statutes do not agree with one another. Whether the money is yours to invoice yet is a question for the rule where the work is, not for the contract alone.
This one depends on where you work
The rule behind retainage is set by the province or state the work is in, and the versions do not agree with one another. We have described the shape of it and deliberately not named a deadline, a cap or a percentage — check the rule where you work, or ask someone who practises there.
Related terms
- Progress paymentA payment due partway through a job, tied to a stage of the work rather than to a date.
- Substantial completionThe point at which the work is finished enough for the customer to use the property for what it is meant for, even though small items remain.
- LienA claim registered against the property you worked on, which makes it difficult for the owner to sell or refinance until you are paid.
- Lien waiverA signed document in which you give up your right to lien for work you have been paid for.
Every document in your name, not ours
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