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Adding Retainage and Retainage Max Value
Adding Retainage and Retainage Max Value

Set a Retainage % and Not Exceed Amount for your Prime Contract's payments.

Updated over a week ago

Retainage is the amount of money withheld from payment to a contractor or subcontractor until a time specified in the contract. Retainage is calculated by setting a percentage for each payment made during the project. You can also set a Maximum Retainage Value, meaning retainage will be withheld until a specific dollar amount is exceeded or a not exceed amount. In Pegasus you can establish Retainage rules in the Prime Contract.

NOTE: You can use variable retainage percentage amounts for each payment created for the Prime Contract. These are retainage overrides. If using a variable percentage amount on your project you can leave the percentage amount blank in this section.

How to Set a Retainage Percentage for your Project in Pegasus

In your Draft Prime Contract, locate the Retainage section. Select the Edit button.

From the side blade widget enter the Retainage % in the Default Retainage Percent field (number only).

Enter the Retainage Max Value in the Max Retainage Value field (example: Retainage not to exceed $500,000.00).

Select the Save button.

Your Retainage rules will now be displayed in the Retainage section. Again, you can override these rules using the Pay Estimate in Pegasus by establishing a rule for that specific pay period or a specific item in that pay period. Retainage withheld can also be released from a specific Payment.

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