retention money


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retention

1. The withholding of a portion (usually 10%) of a periodic payment to a contractor, by prior agreement, for work completed. The retention is held in escrow for a stipulated time period after the acceptance of the completed work by the architect and owner/payee.
2. The amount of preservative, fire-retardant salt, resin, etc., retained by treated or impregnated wood.
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.
References in periodicals archive ?
And contractors who go under mean that those owed retention money cannot claw it back - unsecured creditors never get their money.
In a complex situation there are issues surrounding pay, holiday pay, holidays and retention money paid to some staff in school holidays.
Financial director Sebastian Bull' package was pounds 762,000, partly thanks to pounds 150,000 retention money and a pounds 300,000 pay-off when he moved on.
It added that the retention money was returned to the private contractors despite the defects in the construction project.