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Murugeshwari S.
Why Construction Retainage is Just Like Buying a Custom Car Imagine taking your car to a top mechanic for a major upgrade. They tell you: Pay 90% now, and pay the final 10% after you drive it for a week to make sure everything runs perfectly. That final 10%? That’s Retainage. In construction, clients hold back 5% to 10% of every invoice until the project is 100% complete and inspected. Why does this matter for your business lifestyle? The Trap: If you treat that 10% as money you can spend today, your cash flow will feel like driving on empty. The Reality: That money is locked away until final sign off. The Fix: Treat retainage as a savings account for project completion, not everyday operating cash. When you track retainage separately and clearly, you stop guessing your bank balance and start running your business with peace of mind.
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