retention
How to Calculate & Display Retainage on an AIA G-702/G-703
Retainage is a portion of the agreed upon contract price deliberately withheld until the work is substantially complete to assure that contractor or subcontractor will satisfy its obligations and complete a construction project. Retainage or retention can be: a fixed percentage of the contract - such as 10% of the value of the contract, a variable rate - such as 10% of the contract until the contract is 50% complete; at which time it is then reduced to 5%, OR a variable rate - such as retainage is held at 10% on labor and 0% on materials. The amount of retention that is held quite often signifies a portion of the contractors overall profit on the construction project. Continue reading
QuickBooks Tip – Handling Retainage
Retention or retainage is usually a specific percentage, for example 10%, of the total contract that is held back by the project owner in reserve to protect the owners interest. QuickBooks users must initiate work-arounds and make QuickBooks track retainage that is held on each progress invoice. Continue reading
About Your Host:
Nancy Smyth, Sunburst Software Solutions, Inc.QuickBooks Construction & Payroll Expert
I've been using and supporting QuickBooks products since the early 1990's. I've worked with thousands of contractors, assisting them with QuickBooks setup, Certified Payroll Reporting requirements, AIA Billing and Weighted-Average Overtime.
QuickBooks is a powerful product, but learning how to use it in your construction business can be difficult. I hope you find resources available here to be helpful.
Top QuickBooks blogs to read in 2018
We've been selected by TSheets as a Top QuickBooks blog to read in 2018!
FREE 30-Day Trials
Certified Payroll Training:
QuickBooks Training
Frustrated with QuickBooks?
Learn how to get the MAXIMUM possible results from QuickBooks in your construction business! Visit our new QuickBooks training website, Learn to use QuickBooks in your construction business.
Buy QuickBooks:
QuickBooks Time Tracking
Save 10%/FREE 14-day trial!
