Retention Money
/ˈriːtɛnʃən ˈmʌni/
Definitions
- (n.) Funds withheld from a contractor’s payment to ensure proper completion of a construction project and remedy of defects.
The contract stipulated a 5% retention money to be held until project completion.
Forms
- retention money
Related terms
See also
Commentary
Retention money is typically a fixed percentage withheld and released upon satisfactory completion, serving as security for the client against defective or incomplete work.
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.