Accounting Cash Flow Contract Liability 
Levelset
JUNE 6, 2022
In an attempt to hold contractors accountable, many projects use retention holdbacks, also known as retainage. These holdbacks need to be accounted for by every party to a project: owner, general contractor, and subcontractor. The rate of retention is stipulated in the construction contract and can often be negotiated.
Contractor Bookkeeping
MAY 5, 2014
In the meantime, service agreement customers are a source of cash flow and are predetermined to call you instead of your competition when repairs are necessary. They may call your contracting company for future work or they may decide to shop the competition and use the information they find to negotiate for a lower price.
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