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[edit] Introduction. Retention is a percentage (often 5%) of the amount certified as due to the contractor on an interim certificate, that is deducted from the amount due and retained by the client.The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract.Retention can also be applied to nominated sub-contractors, and the main contractor may also apply retention to domestic sub-contractors. possible alternative to retention is a retention bond, where the client agrees to pay the amounts which would otherwise have been held as retention, but instead a bond is provided to secure the amount that would have been retained.
Posted on May 25, 2012 by oppergambrell. Statutory retainage is a specific legal requirement imposed on an owner of Texas real property undergoing construction, to hold back a portion of the progress payments due the general contractor for the benefit of any unpaid subs and suppliers for their work on the project.rue retainage is where the owner or lender requires that 10% of each progress payment be deposited into an account controlled by the owner or lender until 30 days after the project is finally completed, including punch list items. This method is typically used on commercial construction projects.