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How Does Scaftra Manage Retainage?

How do you withhold and release retainage without releasing it before the lien waivers clear?

Scaftra withholds retainage per line on each pay application and releases it only through an explicit, operator-initiated release that is gated on lien-release clearance.

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The problem it solves

Retainage is the portion of each pay application the owner holds back, typically 5 to 10 percent, until the job finishes, as a guarantee the work gets completed. It accrues per line as billing progresses and is released later, but never before the lien waivers are in. When retainage is tracked in a spreadsheet, the held and released figures drift from the billing and releases happen at the wrong time.

Why it matters

Releasing retainage before the subs' lien waivers clear exposes the GC to double payment and a mechanics-lien claim. Retainage release is a deliberate financial action, not something that should fire automatically when a section turns over. Tracking the held and released amounts on each line, and gating release on lien clearance, is the contractor's protection.

Common mistakes

Try
Tracking retainage in a spreadsheet
Reality
A separate sheet drifts from the per-line billing and loses the true held and released amounts.
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Releasing before lien waivers clear
Reality
Releasing retainage with pending lien releases exposes the GC to double payment and a lien claim.
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Auto-releasing on turnover
Reality
Turnover unlocks release; it should never execute it. A hot financial move needs traceable operator intent.
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Losing the per-line history
Reality
If held and released are not tracked per line, you cannot prove how much is still owed at closeout.

How it works

  1. Withhold per line each cycle
    Each pay application computes and withholds retainage per line as it bills progress.
  2. Track held and released on the line
    The schedule-of-values line carries retainage held to date and released to date.
  3. Clear the lien releases
    Required lien releases must be verified or waived before any release is allowed.
  4. Release explicitly
    An operator initiates a retainage release; it is never auto-fired by a state change, and it is gated on lien clearance.

How Scaftra does it

Scaftra computes retainage per line on each pay application and stores retainage held to date and released to date on the schedule-of-values line. Release is an explicit, operator-initiated action, never auto-fired by turnover, and it is gated on lien-release clearance: required lien releases must be verified or waived before release is allowed. Closeout itself requires zero unreleased retainage, so a project cannot close with retainage still held. Retainage-offset settlements (for example, applying a backcharge against held retainage) cannot exceed the held amount. The money math is computed to exact cents with a named tolerance, never approximate. This is built and live.

Scaftra holds retainage per line and releases it only on explicit operator intent with lien releases cleared, so it is never released before the waivers are in.

Key capabilities

  • Per-line retainage ledger: Held-to-date and released-to-date live on each schedule-of-values line, not a side spreadsheet.
  • Lien-clearance gate: Required lien releases must be verified or waived before retainage can be released.
  • Explicit operator release: Release is an operator-initiated action, never auto-fired by a turnover or status change.
  • Closeout requires zero held: A project cannot close with unreleased retainage still on the books.

Benefits

  • Retainage is never released before the subs' lien waivers clear.
  • Held and released amounts stay reconciled to the per-line billing.
  • Closeout cannot complete while retainage is still owed.

Who it's for

Commercial GCsControllers
  • Commercial GCs.Contractors holding retainage on every draw and protecting against lien claims at release.
  • Controllers.Finance staff who need release gated on lien clearance and reconciled per line.

Frequently asked questions

Does Scaftra release retainage automatically?
No. Release is an explicit operator-initiated action. Turnover unlocks release but never executes it, and release is gated on lien-release clearance.
What blocks a retainage release?
Pending required lien releases. They must be verified or waived before retainage can be released.
Can a project close with retainage still held?
No. Closeout requires zero unreleased retainage, so the money side must be settled before the project closes.

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