Retainage
/rɪˈteɪnɪdʒ/
Definitions
- (n.) A portion of a contract payment withheld until the completion of work to ensure satisfactory performance.
The contractor received 90% of the payment upfront, with the remaining 10% as retainage until the project passed inspection.
Forms
- retainage
Related terms
See also
Commentary
Retainage is commonly used in construction contracts as a financial incentive to ensure completion and remedy of defects.
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.