Field note

Construction Retainage: What to Reconcile When Final Money Is Still Outstanding

Retainage is part of the final account. Separate the balance from the condition delaying its release.

Get the number first

Reconcile contract value, approved changes, the amount billed, payments received, retainage withheld, credits, backcharges, and any remaining balance. If those figures do not reconcile, you do not yet know what the closeout problem is.

Then name the dependency

An open retainage balance may sit on closeout documents, punch-list status, final change orders, releases, upstream payment, a disputed deduction, or a requirement written into the contract. The file should show which condition is actually open. “Retainage” is not the explanation by itself.

Keep the legal question separate

Retainage rules and payment rights vary by contract, project type, and jurisdiction. A review of the records can establish the commercial position and the open dependencies. The rights and the remedies belong with counsel.

Start with one project. Send the job, the approximate completion date, what looks unresolved, and where the records are.