Holdback
A portion of payment withheld until the project reaches a specific milestone or completion.
Holdbacks are retained funds from contractor payments, ensuring project completion and quality compliance. They are crucial for incentivizing performance, addressing deficiencies, and mitigating financial risk. Properly managing holdbacks helps maintain leverage over contractors, supports project closeout, and ensures funds are available to address any remaining work or issues, ultimately protecting client interests and ensuring successful project delivery.
Used in a sentence
A holdback was applied to ensure all punch list items were addressed.
Synonyms/variation
Retainage
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