Getting Paid

Understanding Retainage: How to Get Your Held-Back Money Released

July 23, 2026

Retainage (sometimes called retention) is the portion of each payment an owner or general contractor withholds until a project is substantially or fully complete. It is meant to guarantee you finish the job, but for contractors it means a chunk of your profit sits in someone else’s account for months.

How much retainage is typical?

Most contracts hold back 5 to 10 percent of each progress payment. On a large project that can add up to tens of thousands of dollars tied up until the very end, so it pays to understand your rights and the release process.

How to get retainage released

• Clear every punch list item and get written sign-off from the owner or GC.
• Submit all required close-out documents: warranties, as-builts, and lien waivers.
• Provide a conditional final lien waiver with your retainage request.
• Follow the contract’s stated release timeline and put your request in writing.
• Sign an unconditional final waiver only after the retainage check clears.

Protect your leverage

Never sign an unconditional waiver for retainage before the money is in your account. Keep your lien rights alive until the funds clear. LienGuard makes it easy to generate the exact conditional and unconditional waivers your retainage release requires.