Retainage
A) is always held by the Owner
B) is usually held back as a percentage of the invoicing
C) will not be paid until final acceptance
D) is illegal in several states and on Federal work involving military projects

Question

Quizplus · Accepted Answer

Retainage is usually held back as a percentage of the invoicing, typically around 5-10%. This amount is held by the party paying for the work (usually the Owner or General Contractor) until the work is complete and final acceptance is granted. This provides a financial incentive for the contractor or subcontractor to complete the work satisfactorily, as they will not receive the full payment until the project is finished. While retainage is legal in most states and on Federal projects, some states and projects may have limitations or restrictions on the amount that can be held.