Finance
Retainage and lien waivers
Track every dollar of retainage across projects and counterparties, forecast when it releases, and generate the right lien waiver with the right numbers at the right time.
Retainage is a percentage of each construction payment withheld until the work is complete, and a lien waiver is a document a contractor signs giving up lien rights in exchange for payment. Managing both means tracking withheld amounts per project, forecasting release, and exchanging the correct waiver type at each payment.
- Private retainage (ASA / Clemson study, Bausman 2004)
- 7.59% withheld
- California and New York cap
- 5% maximum
- Lien waiver types
- 4: conditional or unconditional, progress or final
The problem
Retainage is your profit, held hostage by paperwork.
Retainage often represents the bulk of a job’s margin, withheld a few percent at a time across every payment until the end of the project. Tracked in scattered spreadsheets, it is easy to lose sight of how much is outstanding, on which project, held by whom, and when the terms say it should come back.
Lien waivers are the other half of the trap. The wrong type, the wrong amount, or the wrong timing can delay a payment or give up rights before the money actually clears. Conditional versus unconditional and progress versus final are not interchangeable, and the exchange happens on every pay cycle.
Buildalytic tracks retainage per project and counterparty, forecasts release against contract terms, and generates the correct waiver with the right amount and date so nothing is signed early and nothing is left uncollected.
How it works
From withheld to released, with the paperwork right.
Track what is held
Retainage is tracked per project, per counterparty, and per pay period, with state caps applied automatically.
Forecast release
Release is projected against contract terms and completion milestones, so held cash has an expected date.
Generate the waiver
The correct conditional or unconditional, progress or final waiver is generated with the right amount and date.
Match to payment
Waivers are tied to the payment they belong to, so nothing is signed before the money is real.
What is inside
The retainage ledger and the waiver desk, together.
Retainage by project
Withheld amounts tracked per project, counterparty, and pay period.
State caps
Statutory caps, such as the 5 percent limit in California and New York, applied automatically.
Release forecasting
Projected release dates against contract terms and completion.
Waiver generation
All four waiver types generated with correct amounts, dates, and format.
Timing control
Conditional versus unconditional timing enforced so rights are not given up early.
Payment linkage
Each waiver tied to the pay application and payment it supports.
Frequently asked questions
What are the four types of lien waivers?
There are four: conditional progress, unconditional progress, conditional final, and unconditional final. Conditional waivers take effect only when payment actually clears; unconditional waivers take effect on signing. Progress waivers cover a payment during the job; final waivers cover the last payment. Using the wrong one can give up rights before payment.
What is the difference between a conditional and unconditional lien waiver?
A conditional lien waiver only releases lien rights once payment has actually been received and cleared. An unconditional lien waiver releases those rights the moment it is signed, whether or not payment follows. Signing an unconditional waiver before the money clears is a common and avoidable mistake.
What is a typical retainage percentage?
Private-project retainage measured 7.59 percent in the ASA and Clemson University study (Bausman, 2004), though it varies by contract. Many states cap it, and both California and New York limit retainage on covered work to 5 percent. The percentage is withheld from each payment and released at project completion under the contract terms.
Is there a legal cap on retainage?
Many states cap retainage, especially on public work. California and New York limit it to 5 percent on covered projects. Caps and release timing vary by state and by whether the work is public or private, so tracking the applicable limit per project keeps the withheld amount lawful.
When is retainage released?
Retainage is typically released at substantial or final completion, once the work is accepted and any punch list is closed, under the timing set by the contract and state prompt-payment law. Because release depends on milestones and paperwork, forecasting the date is how a contractor plans for that cash.
See your retainage in one ledger.
We will show retainage tracked by project and counterparty, release forecast, and the correct waiver generated for each payment.