Public works contractors are experts at controlling costs. You bid tightly against strict specifications, manage prevailing wage labor carefully, and watch every dollar because the margins on government work leave little room for waste. Yet many contractors overlook one of the largest pools of idle capital in their entire operation: the retainage held across their active government contracts. On a major public job, that can mean seven figures sitting completely still.
Consider the scale. For every 100 million dollars of public work, a contractor may be leaving roughly $300,000 dollars of potential earnings on the table simply because the retainage is not invested. That is income you could be capturing on money that is already yours, without taking on new bids, new crews, or new risks. (This figure assumes a 4 percent return over a three-year period, in high-quality bonds, with no guarantee of results and the possibility of loss.)
The good news is that this is a solvable problem, and it has been solved for public sector contractors many times before. Double Diamond has built its reputation on turning idle government retainage into earning potential. Learn what your retainage could be doing by calling 877 420 2852 or click hereto learn more.
