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How it works
Nothing about retainage changes except who earns on it.
The owner withholds the same amount. It sits in a segregated account at an FDIC-insured partner bank instead of the owner's cash. The GC and subs earn the interest, and the account's rules put a clock on payment and closeout.
The account
Three steps.
Step 1
The owner withholds as usual
5 or 10 percent of each pay application, exactly as the contract already says. Instead of keeping it, the owner deposits it to the project's dedicated account.
Step 2
It sits in its own account
Held at a partner bank, separate from everyone's operating cash. Every GC and sub has its own sub-account on the ledger, so each party's balance is always clear.
Step 3
You earn, then you're paid out
Interest is credited monthly to each party pro rata by balance. When your scope clears closeout, your retainage and interest release together.
- We administer the account
- We don’t hold your funds
- We don’t lend them out
- We don’t invest them
The only extra step. The owner, the GC and every other party simply CC payapp@retain.capital on every pay app submission, discussion and approval. Everything else stays exactly as you do it today.
Over the life of a project
From contract to closeout.
1Contract signed
A short rider in the owner/GC contract sets up the account and its dates.
2Subs onboard
Each sub gets a sub-account and a login. No cost to them.
3Every pay app
Everyone CCs payapp@retain.capital on the pay app, its discussion and approval. Retainage is deposited and closeout documents come in as the job goes.
4Every month
Interest credited to each party. Statements issued.
5Your release
Your scope clears, your balance and interest release to you.
Who does what
Everyone keeps their role. The money just sits somewhere better.
Owner
Withholds retainage as the contract allows and deposits it to the project account. Keeps every protection retainage gives it today.
General contractor
Signs the rider with the owner, flows it down to subs, and earns interest on its own retained share.
Subcontractors
Earn interest on their own retained balance, see it live, and release when their own scope clears.
Partner bank
An FDIC-insured bank. Holds the funds in a segregated account and pays interest at a published rate.
Retain-Edge
Administers the account: the ledger, monthly interest allocation and statements, payment dates and notices, and closeout tracking. Interest is tracked by party and documented for tax reporting. We don’t hold, lend or invest the money.
What it costs
Fees come out of interest, never out of your retainage.
Every statement shows three lines: what the account earned for you, the administration fee, and what you keep.
Example only. Fees and rates vary by state and project and are set out in each account agreement. Subs are never charged to get to their own money.
Example statement12 months
Average retained balance $100,000.00
Interest earned at 3.70% $3,763.40
Administration fee −$250.00
You keep $3,513.40
Payment acceleration · included free
A funding date on every pay app.
Every pay app gets a funding deadline everyone can see.
The clock
SubmittedPay app submitted
DeadlineFunding deadline
Late?Interest goes to you
Late-funding interest is paid into the account and credited to the contractors, not to us.
What it's worth
Per $1M billed, what it costs a contractor to carry the billings on its own credit line while it waits:
$16,110Paid at 56 days, today
$8,630Paid on time, with us
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