Don't Let Back Charges Eat Your Retainage

Retainage can hold your profit hostage. Karalynn explains why owners withhold retainage, why payment can lag long after your work ends, and how early notices, properly filed liens, and proof-based challenges to back charges help protect the money you earned. Learn more about The Cromeens Law Firm here ! Read more about punch lists here , and listen to our deep dive about them here . Grab Karalynn's new book Trust Your Gut here . Follow Karalynn Cromeens on Facebook here . Follow Karalynn Cromeens on Instagram here . Follow Karalynn Cromeens on LinkedIn here . Watch the show on YouTube here . Key Takeaways 1. Retainage is money held back until the end of the project, and Karalynn explains how an owner's properly withheld funds can limit the amount available to satisfy lien claims. 2. Finishing your scope does not necessarily trigger retainage payment because release generally depends on completion of the entire project, leaving early trades waiting months or years for money that may represent most of their profit. 3. Challenge back charges by requesting evidence, including proof that the owner assessed liquidated damages or that corrective work was actually performed and paid for, instead of accepting an unexplained deduction. 4. Without lien leverage, a contractor may face pressure to accept only a percentage of the retainage owed because pursuing the remainder through a contract lawsuit takes time and money. 5. Protect retained funds by following your state's notice and lien requirements, including the separate Texas retainage notice process Karalynn describes, rather than waiting until final payment becomes a dispute.