Build Your Future: Ace the Construction Management Exam 2025 with Confidence!

On large projects, owner retainage is typically kept in full until project completion. This practice is rooted in the owner's desire to ensure that all contractual obligations are met before releasing the retention funds. Retainage serves as a financial incentive for contractors and subcontractors to complete the work satisfactorily and address any defects or deficiencies that may arise throughout the project. By holding onto the retainage, the owner mitigates the risk of incomplete work or unresolved issues, ensuring that the project meets the required standards and specifications before final payment is made.

The retainage is often a percentage of each payment made throughout the project, but it generally won't be released until the entire project reaches completion and the owner is satisfied with the final results. This process helps maintain accountability and ensures that contractors have a motivation to finish the job correctly, fulfilling all aspects of the contract.