If you build for the public sector, you know the drill. On government projects, whether state, or municipal, the agency holds back a percentage of each payment, usually 5 to 10 percent, until the job is fully complete. This retainage on public work is often mandated by statute to protect the taxpayer and the awarding authority. The problem is that on a large governmental contract, retainage can add up to hundreds of thousands or even millions of dollars and can sit locked away for years while the project continues.
Here is the dilemma. While that money waits in a government account, it is earning nothing for you. It is your money, tied to your labor and your bonded risk, yet it produces zero return while it sits. Over the life of a multi-year public contract, that is a real and measurable cost to your business.
At Double Diamond Investment Group, we have spent over 30 years helping public sector contractors change that reality. We show contractors how to keep their retainage working for them instead of standing still. If you carry significant retainage on your government projects, it may be worth a short conversation. Call us at 877 420 2852 or click here to learn more.
