It's a 50/50 shot at actually getting it back. I was one of only 3 out of 20 some contractors to get my retainage back from the Protel/MasTec Tucson gig. You would not believe the hoops/bull$hyt I had to go through to get it either.
Generally, it is 10% capped at 2,000 to 5,000 some are not capped. So if you invoice $2500, they will hold 10%, or $250.00, as retainage leaving you with a $2250.00 check.
I have seen companies take a few $500 chunks out of checks to get it up to the cap quickly to cover their ass in case a hack is in there and bails out quickly.
It is wise to research the company about the retainage. Legally, it is supposed to be held in a seperate account and not touched for anything except charge backs on your work.
The unsrcupulous companies will make up anything to keep your retainage and chances are, they were never intending to give it back in the first place.
Some companies are GREAT and religious with the retainage. Others will have a rediculous charge for something stupid. I.E. you forgot a ground, so they charge you input and output footage and a $25 fee to fix it. Now, at this location you were only allowed to charge for, let's say input footage (jobs vary). So, you billed $97.50 for the location and they hit you with a backcharge of $420.00 for putting a 2 dollar bond on.
Generaly, I figure a job without it. So, if a job will pay 200 and have a 10% retainage, I figure it will just pay $180 and wite off the retainage. That way, if the company does pay it back, it's basically a bonus!
Hope this helps,
Vic
Re: How does retainage work?
Member #: 3229
Registered: 1996-2001
Posted:
456
Name:
Victor Solesky
Name:
Victor Solesky
Company:
Precision Splicing LLC
Occupation:
Owner
Location:
Denver
Experience:
~28 years
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