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
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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.
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