Invoicing

    Retainage

    A portion of a contract amount withheld until the project is complete.

    Definition

    Common in construction — usually 5–10% held by the GC or owner until final acceptance. Subcontractors invoice retainage separately at job close-out. State retainage laws vary widely.

    Related terms

    Invoice

    A document a business sends a customer requesting payment for goods or services.

    Construction

    Skilled trades that build, remodel, or repair structures.

    Mechanic's lien

    A legal claim against a property by a contractor who hasn't been paid for work performed.