Contract Retention
/ˈkɒntrækt rɪˈtɛnʃən/
Definitions
- (n.) The practice of withholding a portion of payment under a contract to ensure satisfactory performance or completion of contractual obligations.
The contractor agreed to a 10% contract retention to guarantee the timely completion of the project.
Forms
- contract retention
Related terms
See also
Commentary
Contract retention is commonly used in construction and service contracts as a risk management mechanism to ensure compliance and quality before final payment.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.