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Pay application and retainage calculator

Work out a progress billing the way an AIA G702 does it: completed and stored to date, retainage on work and on stored material, earned less retainage, less previous certificates, current payment due — and the balance to finish.

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Pay application & retainage

The arithmetic behind a G702-style pay application: work completed and stored to date, retainage held, what was already billed, and what is due this period.

Schedule of values

Result

Completed and stored = contract × % complete + stored materials. Retainage = completed work × retainage % + stored × stored-retainage %. Earned less retainage = completed and stored − retainage. Current payment due = earned less retainage − previous certificates. Balance to finish = contract − completed and stored, plus retainage.

How to use it

  1. Enter the contract sum to date.
  2. Enter percent complete and stored materials.
  3. Enter the retainage rates on work and on stored material.
  4. Enter previous certificates, and read the payment due.

A worked example

On a $4.0M contract at 28.75% complete with no stored material and 10% retainage, completed to date is $1,150,000, retainage $115,000, earned less retainage $1,035,000 — with $862,500 previously certified, $172,500 is due.
Want the background? The guide works through the arithmetic, the mistakes that hide problems, and a checklist.
Read: AIA G702 and G703 →

Questions

How is current payment due calculated?

Completed and stored to date, minus retainage, gives earned less retainage; subtract previous certificates for payment to get current payment due.

What is a typical retainage rate?

Commonly 5% to 10%. Many states cap it on public work, and contracts often reduce it at 50% complete.

Is retainage charged on stored materials?

Often at a different rate — the G702 allows separate retainage on completed work and on stored material.

What is balance to finish including retainage?

Contract sum to date minus earned less retainage — the work left plus the retainage still held.

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