Business FinancesQuestion 1151 of 1605
A contractor completes a $250,000 job on which the owner withheld 10% retention throughout. Assuming no deductions, how much retention should be released at closeout?
a.$12,500
b.$2,500
c.$25,000
d.$225,000
Explanation
Total retention = 10% of the $250,000 contract = $25,000. Once the work is accepted and any lien/warranty conditions are met, the full $25,000 retention is released to the contractor.
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Related questions on this topic
- An owner withholds 10% retention on a $40,000 progress billing. How much does the contractor receive on that billing?
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- On a home improvement contract, payments a contractor schedules and collects must:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)