AFTERDRAFT

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