Retainage Amounts: Third Invoice

For the third invoice, the total invoice amount exceeds 89,250.00 USD, so the system calculates retainage using the following steps:

1. Determines the total amount on which to calculate retainage by adding all prior and current cost and award fee amounts.

   66,207 + 2,500 + 31,320 + 2,500 = 102,527

2. Subtracts 89,250 from 102,527 to calculate the total retainage amount.

   102,527 − 89,250 = 13,277 total retainage

3. Determines what percentage the cost and award fee amounts are of the total amount on which retainage is calculated for the current invoice and allocates this percentage of the total retainage to each amount.

   • Cost amount allocation: (31,320.00 / 33,820) x 13, 277 = 12,295.55

   • Award fee amount allocation: (2,500 / 33,820) x 13,277 = 981.25