Author: Don Gregory
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Time for Change: Why the Practice of Retainage Is in Need of Significant Reform
As subcontractors know all too well, retainage is an owner’s or higher-tier contractor’s practice of holding a predetermined percentage from each progress payment to the next-lower tier of subcontractors, and releasing the retained amounts only when a milestone such as “substantial completion” is reached. This practice has a dramatic effect on subcontractors, because the financial…