Understanding the Retainage (Retention) Payments Contracts

Description

This Skill Bit explains that retainage contracts involve withholding a portion of the contractor’s payment until the project’s completion or until specific quality standards are achieved. This practice incentivizes contractors to maintain high-quality work and ensures accountability throughout the project. Successful management of retainage requires clear communication and collaboration between the client and contractor, as well as effective monitoring of project progress.

Duration approx. 4 Min.

Tier: proficiency