Contracts & ExecutionQuestion 160 of 1605
On a project with a $250,000 contract, the owner withholds 10% retention from each progress payment. After $150,000 of work has been billed and approved, how much retention has been withheld so far?
a.$1,500
b.$10,000
c.$15,000
d.$25,000
Explanation
Retention is withheld as a percentage of the work billed to date: 10% x $150,000 = $15,000. Retention is released after satisfactory completion, typically tied to project acceptance.
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