Contractual Retention
/kənˈtræktʃuəl rɪˈtɛnʃən/
Definitions
- (n.) A provision in a contract allowing one party to withhold a portion of payment until certain conditions are fulfilled or obligations are met.
The contractor agreed to a contractual retention of 10% until the project was completed satisfactorily.
Related terms
See also
Commentary
Often used in construction and service contracts to ensure performance and remedy defects before final payment.
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