Retainage
3 articles
Cash Flow
Why Profitable Contractors Run Out of Cash: Retainage, Growth, and the Gap Nobody Adds Up
Your WIP says the jobs are profitable. Your bank account disagrees. For a commercial contractor the gap between the two is usually retainage, underbillings, and the working capital that growth quietly consumes.
CFO Advisory
The Four Numbers Every Commercial Contractor Should See Every Month
Most contractor reporting is a P&L nobody reads and a bank balance everybody watches. The four numbers that actually run a contract business are percent complete, retainage, contract margin against estimate, and cash against profit.
Cash Flow
How Contractors Get Paid Faster: Pay Applications, Retainage, and Who Makes the Call
For a sub working under a GC, slow payment is not a collections problem. It is a pay application that does not tie to the schedule of values, retainage nobody added up, and a phone call you do not want to make.