Punch and closeout retainer

Definition

The share of the contract held back until the last details are signed off.

Why It Matters

Finish trades are last on the job, which means they are working while everyone else is trying to close it out, and the final payment waits on a walk-through by someone looking for reasons to hold it. That is why receivables in this trade age differently from the rest of the site: the work is done, the invoice is out, and the money sits behind a list of chips and touch-ups. Age the receivables by job stage instead of by date, and ask how many closed jobs still carry a balance, because a company that cannot finish its punch lists has revenue it will never collect.