Retainage release is the process of collecting the funds that were held back during the project. Understanding when and how retainage is released helps you plan cash flow and project closeout.
Pro Feature Required
Release Milestones
Retainage is typically released at one or more project milestones:
Substantial Completion
The point when the work is sufficiently complete for the owner to occupy or use the building for its intended purpose. Common release: 50% of retainage.
Final Completion
When all punchlist items are complete and final inspection is passed. Common release: Remaining retainage.
Warranty Period End
Some contracts hold a portion of retainage (often 1-2%) through the warranty period, typically 1 year after substantial completion.
Contract Terms
Typical Release Schedule
| Milestone | Release Amount | Cumulative Released |
|---|---|---|
| During Construction | 0% | 0% |
| Substantial Completion | 50% | 50% |
| Final Completion | 50% | 100% |
Requirements for Release
To receive retainage release, you typically need to provide:
At Substantial Completion
- Certificate of Substantial Completion
- Final unconditional lien waiver for progress amounts
- Updated as-built drawings (if required)
- Operation and maintenance manuals
- Warranty documentation
At Final Completion
- Final unconditional lien waiver for all amounts
- Completed punchlist sign-off
- All closeout documents submitted
- Final inspection approval
- Release of retainage request
Start Early
Requesting Retainage Release
Step 1: Confirm Milestone
Ensure the project has officially reached the release milestone. Get written confirmation from the GC or architect.
Step 2: Submit Final Pay App
Create a final payment application that includes:
- Any remaining work completed this period
- Request for retainage release
- Final unconditional lien waiver
Step 3: Provide Documentation
Submit all required closeout documents with your release request.
Step 4: Follow Up
Track the release request just like a regular pay application. Follow up if payment is delayed.
Processing Release in RIVET
Creating a Retainage Release Pay App
- Navigate to your project's billing section
- Click New Pay Application
- Select Retainage Release as the type
- Choose the release milestone (Substantial or Final)
- Review the release amount
- Generate documents
What's Generated
RIVET creates a pay application showing:
- No new work this period (unless applicable)
- Retainage release amount in Line 5
- Updated Line 8 reflecting the release
Tracking Releases
RIVET tracks retainage through its lifecycle:
| Status | Description |
|---|---|
| Retained | Held by GC, not yet released |
| Release Requested | Submitted request for release |
| Release Approved | GC approved release, payment pending |
| Released | Payment received |
Common Release Delays
Incomplete Punchlist
The most common delay. GCs won't release retainage until punchlist itemsare completed and verified.
Missing Documentation
Incomplete closeout packages delay release. Common missing items:
- As-built drawings
- Warranty letters
- O&M manuals
- Lien waivers from suppliers
Disputed Amounts
If there are disputes about completion or quality, retainage may be held pending resolution.
Protect Yourself
Partial Releases
Sometimes only a portion of retainage is released:
- 50% at substantial completion, 50% at final completion
- Release minus amounts for incomplete punchlist
- Release minus disputed change orders
RIVET tracks partial releases and shows your remaining retainage balance.
Best Practices
Document Everything
Build Relationships
Plan for Timing
Next Steps
Learn how retainage syncs to your accounting system.
Need Help?
If you have questions about retainage release or need assistance, contact our support team at support@slpwlk.io.