What does retainage mean in construction?
Short definition
Retainage is a portion of payment withheld until work reaches agreed completion milestones.
Longer explanation
Owners often hold retainage to provide financial assurance that contracted work will be completed and deficiencies resolved.
Example in context
“The project team reviewed the retainage during the construction phase.”
Common users
- Owners
- Architects
- Contractors
- Construction managers
Related terms
Related resources
Construction Contract TermsContract and agreement terms used for pricing, obligations, general conditions, payment, changes, and claims.Construction Payment TermsBilling, retainage, lien, invoice, schedule of values, and job cost terms used in construction payment workflows.Substantial Completion vs Final CompletionUnderstand the milestones that separate usable work from fully complete contract work.Pay Application vs InvoiceCompare construction pay applications with invoices submitted for payment.Construction Pay Application ProcessHow progress billing is prepared, reviewed, certified, and paid on construction projects.Subcontractor Invoice Review TemplateFields for reviewing subcontractor billing against progress, retainage, waivers, and contract scope.