Retainage
Definition
Retainage is a percentage of each progress payment — typically 5-10% — withheld by the homeowner or property owner until project completion is certified. Retainage incentivizes the contractor to finish punch list items and obtain final inspections before receiving the final payment.
Common Questions
Real-World Example
You'd see this when a homeowner in Vancouver, WA signs a $120,000 remodel contract with CRM Services that includes 5% retainage — released after final punch list completion and signed lien waivers from all subcontractors.
Why It Matters
Retainage is a standard contract feature on larger CRM Services remodeling projects and protects both parties through completion.
Related Services
Related Terms
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