Money & Pricing
Retainage
Money a customer or general contractor holds back from each progress payment until the job is finished and approved. It is usually a small percentage of the contract, though the rate and release rules depend on the contract and the state.
Full guide: roofing contractor profit maximization
More money & pricing terms
- RCV
Replacement Cost Value: the full cost to repair or replace damaged property, before depreciation is subtracted.
- Recoverable depreciation
The portion of depreciation the carrier holds back but pays out after the repairs are completed and documented.
- Sales tax
Tax applied to materials and some services, depending on the state, added to the estimate where the jurisdiction charges it.
- Three-Trade Rule
A carrier guideline that allows overhead and profit for a general contractor when a loss needs three or more separate trades. It is a rule of thumb, not a policy term, and carriers apply their own versions, so answer a denial with your trade list. Some carriers use a different threshold, or none at all.
- True budget
What a job actually costs to complete, materials, labor, overhead, and profit, used to decide whether a carrier's payment covers the work.
- Unit price
The price Xactimate assigns to one unit of a line item, such as a square of shingles or one square foot of roof.
Common questions
What does "Retainage" mean in Xactimate estimating?
Money a customer or general contractor holds back from each progress payment until the job is finished and approved. It is usually a small percentage of the contract, though the rate and release rules depend on the contract and the state.
Where does "Retainage" show up in a claim?
The term matters on estimates and scopes across the insurance restoration workflow, see the full guide for where it fits.
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