Construction contracts for governmental projects often provide that a certain percentage of each billing by the contractor will be retained by the government until the project is inspected and accepted upon completion.

Question

Quizplus · Accepted Answer

This provision protects the government from situations in which a contractor may prematurely move equipment and/or personnel from a project, leaving project completion or minor rework to the government. It also avoids or minimizes the necessity of costly lawsuits to enforce full compliance with the contract.

Construction Contracts for Governmental Projects Often Provide That a Certain