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Re: How does retainage work?

I have been on both sides of the retainage issue and it is true that there are some, if not many, companies that have taken advantage of the whole aspect of retainage.

I feel that 10% is not a magic number but a number easily calculated. Retainage should be reflective of the amount of unforeseen liability a company can reasonably expect to face. A Aerial Linemans retainage should not be the same for someone doing underground placements where the risks and discovery time may be greater. Same goes for how long to hold retainage.

Retainage should never be an ongoing proposition. There has to be a limit on what will be taken out and clearly defined as to how and when it will be returned. Often the retainage is not enough to cover the big dollar tool that disappears.

I hope that more people will identify the troublesome companies in respect to retainages and last checks. Let's find out who the ones to trust are and give thought to whether we want to work for someone that is going to find any reason to keep what is not theirs.
This is CABL.com posting #156743. Tiny Link: cabl.co/mOWh
Posted in reply to: Re: How does retainage work? by gkcritter
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