How do I pay full or partial retention on a Sub Contract?

Retention is a widely used financial mechanism in construction contracts that ensures subcontractors complete their work to the agreed standard before receiving the full payment. Contractor Foreman allows you to not only hold retention through subcontracts but also manage and release it efficiently—whether partially during the project or fully at the end.

This article explains how to release and pay retention on a Sub Contract after generating a bill.

Click here to see how to set up retention for a sub-contract.

How to Release and Pay Retention

Once you’re ready to release either a portion or the full amount of retention for a subcontractor, the process is handled directly through the Subcontracts Module.

Step 1: Generate a Bill from the Sub Contract

• Go to the Subcontracts module from the main menu.

• Open the specific Sub Contract you want to work with.
• Click on the three dot menu (top right) and select “Create Bill”.
• You will automatically be redirected to the newly created bill.

Step 2: Add Retainage for Payment

• Inside the new bill, click on “Add Item to Bill”.
• From the dropdown options, choose “Add Retainage (Partial or Full) for Payment”.
• A new window will appear prompting you to enter the amount of retention you want to release.

You can release the entire retainage amount if the work is completed, or just a portion if only part of the scope has been fulfilled.

Step 3: Save and Close

• After entering the retainage amount, click “Save & Close”.
• This action will add the retainage release as a line item to the bill, making it part of the amount that will be processed and paid.

Contractor Foreman makes it easy to manage retention at every stage of a subcontract. By allowing you to designate retention during the creation of a Sub Contract and release it as needed through the billing process, you maintain control over payments while ensuring contractual obligations are met.