Most public works contractors have never heard the term retainage substitution, and that is exactly why it represents such an overlooked opportunity. In simple terms, retainage substitution means replacing the cash the government is holding with an equivalent security, so the withheld cash can be released and put to work. The awarding agency still has the statutory protection it requires, and you begin making money on capital that would otherwise sit idle for years.
The concept is straightforward, but the execution requires experience, and that is especially true in the public sector. Rules vary by state, by agency, and even by municipality, and government procurement adds layers of statute, approval, and paperwork that most contractors have never navigated. That is where working with a specialist makes the difference between an idea and actual income.
Double Diamond is at the forefront of this business and may be the only dedicated retainage substitution advocate a public sector contractor will find. We have helped hundreds of contractors nationwide unlock the value trapped in their public works retainage. If you would like to understand how substitution could apply to your public projects, reach out at 877 420 2852, or click here to learn more.
