How Texas contractors should handle retainage in 2026
Retainage can hold back 5 to 10 percent of a job for months. Contractors who agree a release schedule up front, and bill on draw dates, get that cash back weeks sooner. Run your own numbers below.
| Way to bill retainage | Cash back | Admin | Best for |
|---|---|---|---|
| Bill it all at the end | Slowest | Least | Short jobs under 3 months |
| Bill it per phase | Faster | Some | Jobs with clear milestones |
| Agree a release schedule | Fastest | Most up front | Long jobs and repeat clients |