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How is Retainage calculated?


If a 10% retainge was taken from my contract as 2nd tiered sub, and the Subcontractor was charged $93k from GC, is it fair that they want to charge me 66% of that fee because I had more employees onsite? How does a Sub calculate who owes what portion of the fees if both parties were working on that contract?

1 reply

Mar 19, 2021

I am having trouble understanding your question. When you reference a $93k "charge" from the GC, do you mean a backcharge? Or was that the amount of retention? Either way, the short answer is that it makes no difference how many employees you had on site - that is not the measureuement of either retention, backcharges, or anything else.

It does sound like you need to speak with a construction attorney to sort out this situation. You are welcome to contact me privately to further discuss how I may be able to assist you.

Good Luck!


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