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.
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.
It added that the retention money was returned to the private contractors despite the defects in the construction project.