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How do I determine the dollar amount for rental equipments?

With rentals, there is no retainage, and no total contract value as they rarely know how long they’re going to rent any specific machine; they’re open-ended contacts. What “total contract amount” and “the dollar amount of your contract that constitutes retainage” should I enter in the required fields to submit a preliminary notice?

1 reply

Feb 23, 2018

First, if there is no retainage being withheld, then no dollar amount of the contract will constitute retainage. Further, if no total contract amount has been designated, it would seem that the total contract amount, at the time a notice is sent, would be represented the amount of the contract to-date. Conceivably, an estimate could be used, but using an estimate or projection could be risky if use of the rental is for a truly an open-ended, indeterminable amount of time. Another alternative might also to be to include the rate for which the equipment is being rented and also including the amount of time the rental has been out, to-date.

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