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Is Shipping Cost Retainable

CaliforniaRetainage

Hi, I want to know if Retainage applies to Shipping cost ? Subcontract does not specify Thank you Gulia

1 reply

Mar 18, 2020
Ultimately, what amounts will be subject to retainage is up to the contract and up to the parties who entered into that contract. Retainage is usually calculated as a percentage of invoices. So, if shipping costs are invoiced like any other cost on the job, then those costs would be included in the retainage calculation. Of course, if the contract doesn't call for retainage at all, then retainage shouldn't be being withheld on the job. Amounts subject to a good faith dispute can be withheld by an owner, regardless of whether the contract provides for retainage. But, something like a shipping cost typically won't fall into the category of disputed costs. For more information on California's retainage rules: (1) California Retainage Guide and FAQs; and (2) California Retainage Laws Make More Sense After Supreme Court Ruling.
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