Holdback Amount Calculator

Holdback = total contract × holdback % (typically 10%). Released after lien period and punch list complete.

Inputs

Statutory in many states/provinces (Canada: 10% by law).

Result

Holdback amount
$8,000
10% of $80,000.
  • Total contract$80,000
  • Holdback %10%
  • Holdback amount$8,000
  • Released to date$72,000
  • Final releaseAfter lien period + punch list.$8,000

Step-by-step

  1. Holdback = 80000 × 0.1 = $8,000.
  2. Released throughout job = $72,000.
  3. Final $8,000 released after statutory lien period (35-60 days post-completion) and punch list signed off.

How to use this calculator

  • Enter total contract value.
  • Set holdback % — 10% standard in most jurisdictions.
  • Track this amount separately from progress payments.
  • Release only after lien period + punch list complete.

About this calculator

Holdback (also called retainage) is the share of each progress payment that the owner keeps until lien rights expire and the project is fully complete. It's the homeowner's only real leverage to get punch-list items finished. Canada's Construction Lien Acts mandate 10% holdback by law. US states vary: Texas allows 10% retainage; California prohibits >5% on private work; many states require funded retainage accounts. Release the holdback only after: (1) certificate of completion, (2) punch list signed off, (3) lien period elapsed, (4) final lien waivers received from GC + all material suppliers.

Frequently asked

In Canada (varies by province), yes. In US: depends on state and contract type. Many private contracts use 5-10% by convention.

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