Contracts & ExecutionQuestion 167 of 1605
A contractor completes $80,000 of work in a billing period. The contract provides for 10% retention. How much should the contractor expect to receive for this progress payment?
a.$80,000
b.$8,000
c.$88,000
d.$72,000
Explanation
The owner withholds 10% retention: $80,000 x 10% = $8,000 retained, so the current payment is $80,000 - $8,000 = $72,000. The $8,000 retention is paid later upon completion.
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