Retainage Withheld and Net Payment (AIA G702/G703)
What is withheld from this draw, what gets paid, and what has piled up so far.
Example
You enter
- Work this period (USD) 100000
- Retainage rate (%) 10
- Prior retained (USD) 40000
You get
- Retention this draw $10000
- Net payment $90000
- Cumulative retention $50000
Checked against published worked examples from: M. Purdy, Public Contracting Blog (WA RCW 60.28).
Details, formula, and sources
ScopeRetention this period = work x retainage rate, net payment = work - retention, cumulative = prior + this. $100,000 draw at 10% withholds $10,000 (net $90,000), cumulative $50,000 on $40,000 prior; a 5% job withholds $5,000. Retainage is earned money held until acceptance; the contract and certified payment govern.
Formula or tableretention_this = work x rate%; net_payment = work - retention_this; cumulative = prior + retention_this.
Source and editionThe retainage withholding and net-payment computation on an AIA G702/G703 progress application, by name.
Free accessRetainage on a progress draw is a standard published construction-billing computation (AIA G702/G703).
What governsEstimate. AHJ and licensed professional govern.
API field nameswork_this_period_usd, retainage_pct, prior_retained_usd, retention_this, net_payment, cumulative_ret
- Retention retention this period = work x retainage rateAIA G702/G703
- Net and cumulative net = work - retention; cumulative = prior + this period (per-period method; AIA G702 and DOT progress estimates compute retainage on work to date and subtract prior retainage, which is what releases money when the rate drops at 50% complete)construction billing
- Contract governs release terms, statutory caps, and the certified payment governscope of this tile