Learn how to calculate the percentage of completion with retainage on a Florida contract

Florida jobsites thrive on clarity—especially when money moves through the hands of contractors, owners, and lenders. A lot of what you’ll see in the Florida Contractors Manual centers on how payments are handled, what retainage means, and how to read the numbers that show how a project is progressing. Here’s a real-world way to think about one common scenario: figuring out the percentage of completion when you know the total cost, how much has been paid, and the retainage.

Let’s walk through a straightforward example

Picture this: a contract with a total cost of 1,400,325.00 dollars. The contractor has already been paid 71,837.00 dollars. The contract includes a 10% retainage. The big question is, what percentage of the work is complete right now?

First, get the retainage right. Retainage is the portion of the contract that’s held back until milestones are met and the work passes inspection. In many Florida projects, that amount is 10% of the total contract cost. So we calculate:

• Retainage = 10% of 1,400,325.00 = 140,032.50

Next, figure out what portion of the money is subject to pay against progress, after the retainage is removed:

• Amount that counts toward completion = Total contract cost − Retainage

• 1,400,325.00 − 140,032.50 = 1,260,292.50

Now, use the standard completion formula. The percentage of completion is the amount paid divided by that “completed-and-payable” portion of the cost, then multiplied by 100 to turn it into a percent:

• Percentage of completion = (Amount Paid / (Total Cost − Retainage)) × 100

• Plugging in the numbers: (71,837.00 / 1,260,292.50) × 100

Do the math and you land on about 0.0570 as a decimal fraction. That translates to roughly 5.70 percent.

The quick takeaway: when you know the total cost, the amount already paid, and the retainage, you can pin down how much of the project’s value has been earned. In this scenario, the project is a little over five and a half percent complete—but we’d typically round to the nearest tenth, which lands us at 5.7%.

Why this calculation matters on the job

• Cash flow realism: Retainage is money held back to ensure quality and timely completion. It affects how much cash a contractor can rely on as the job progresses.

• Progress payments: As work advances, owners and lenders want to see measurable progress. The percent complete helps justify payment requests and keeps everyone aligned on expectations.

• Job costing and change orders: Every change can shift the numbers. A change order might alter total cost, which then cascades into the retainage amount and the percentage of completion. Keeping the math tidy helps prevent miscommunications.

• Lien and risk management: In Florida, understanding how close you are to substantial completion or final payment is important for lien rights, release timelines, and final accounting.

A few quick notes you’ll hear in the field

• Retainage terms vary: The 10% figure is common, but the actual contract might say 5% or a different percentage, especially on public projects or specialized work. Always check the contract language.

• Public vs. private work: Public projects may follow different prompt payment and retainage rules under state statutes and contract documents. Private projects generally follow the negotiated terms, but the math stays the same.

• Change orders change the math: If the project scope grows or costs change, recalculate. The new total cost, minus whatever retainage is specified, becomes the new denominator in the percentage-of-completion formula.

A practical mindset for Florida contractors

Think of percentage of completion as a performance gauge rather than a tax on effort. It’s a way to translate work on site into numbers that tell a story: where you are, what’s been paid, what’s left to do, and how money flows from the owner to the builder.

What to track so you stay sharp

• Total contract cost: Keep this updated if there are approved changes or amendments. It’s the base you’ll use in all progress calculations.

• Retainage amount: Note the percentage and the exact retained sum, with the date it’s withheld and when it’s expected to be released.

• Amount paid to date: Regular, accurate records of what’s been paid keep the math honest and the project on track.

• Progress milestones: Tie those milestones to the actual physical progress on site. This makes it easier to explain the numbers to stakeholders—owners, lenders, or inspectors.

A friendly mental model

Think of retainage like a safety deposit for the project. It’s money the owner holds until the work passes a final check. The percentage of completion is then the fraction of the “payable portion” of the project that has already been earned by the contractor, based on work done and documented. It’s not just about money changing hands; it’s about accountability, quality, and keeping the project moving forward.

Digressions that fit the picture

• On the ground, you’ll hear folks talk about “percentage complete” when scheduling and invoicing. It helps crews prioritize the next tasks and line up subcontractors who depend on timely progress payments.

• Many teams pair this with a schedule of values—an itemized budget that links each line item to a portion of the work. When you can map dollars to concrete work, you’ve got a clearer path from progress to payment.

• If you're using modern tools, software like Procore, CoConstruct, or Buildertrend can automate parts of this. They let you track change orders, retainage, and monthly progress, reducing the chance of miscounts during busy months.

Wrapping it up

The Florida construction world doesn’t run on rumors or approximations. It runs on clear numbers, transparent contracts, and a shared sense of how work translates to pay. The calculation we walked through—retention, the payable portion of the total cost, and the amount paid to date—gives a precise read on how far a project has come.

In our example, the answer is 5.7% completion. It’s a clean figure that can drive decision-making, from scheduling the next set of tasks to preparing the next draw request. And while the math is simple in theory, staying diligent with the inputs—total cost, retainage, and payments—keeps a project from drifting off course.

If you find yourself juggling similar numbers on the job, remember this small recipe:

• Identify the total contract cost.

• Calculate retainage (as defined in the contract).

• Subtract retainage to find the payable base.

• Divide the amount paid by that base and multiply by 100.

A little discipline with these steps goes a long way toward clarity—not just on paper, but in the field, where the work happens and the decisions matter.

Bottom line: when you know the retained portion and the money that’s already moved, you can quantify progress in a way that makes sense to clients, crews, and lenders. And that kind of clarity pays off, every time a new draw comes through or a milestone is reached.