Material retainage
A portion of the agreed-upon contract price for materials that is deliberately withheld until the work is substantially complete to assure that contractor or subcontractor will satisfy its obligations and complete a construction project.
Material retainage is a percentage of payment withheld from contractors or suppliers until project completion to ensure performance and compliance. It provides leverage for project owners to ensure quality standards are met and any deficiencies are addressed before final payment is released.
Used in a sentence
A portion of each payment is held as material retainage until the project is satisfactorily completed.
Synonyms/variation
Retention
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