Top 10 Killer Construction Contract Clauses, Part 4: Retainage Provisions

Retainage is a contractual practice that is unique to the construction industry. Most construction contracts entitle project owners as well as lower-tiers to withhold a percentage of each progress payment to contractors or subcontractors until the contracted work is substantially or finally completed. Retainage ensures that contracted work is completed properly, incentivizes timely completion of the work, and provides financial leverage attendant with defects in construction. While contracts... By: PilieroMazza PLLC