Contratos y EjecuciónPregunta 878 de 1605
A 'retention' (retainage) provision in a construction contract generally allows the owner to:
a.Keep the contractor's tools permanently
b.Charge the contractor extra fees
c.Withhold a specified percentage of each progress payment until the work is satisfactorily completed
d.Avoid paying for any completed work
Explicación
A retention or retainage clause lets the owner withhold an agreed percentage (commonly around 5-10%) from each progress payment as security, releasing it after the work is satisfactorily completed or accepted. It incentivizes the contractor to finish properly and correct defects. It does not let the owner seize the contractor's tools, escape paying for completed work altogether, or impose extra fees; the withheld retention is eventually paid when conditions are met.
Practica las 1605 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- A contractor's bid submitted to an owner is best characterized in contract terms as:
- 'Promissory estoppel' may allow enforcement of a promise, even without traditional consideration, when:
- A general contractor uses a subcontractor's bid to prepare and win the prime contract, reasonably relying on that bid. If the sub then tries to withdraw the bid, the general may argue the sub is bound under:
- A 'progress payment' schedule in a construction contract is designed to:
- A contract that is unfair and one-sided to the point of shocking the conscience, formed under grossly unequal bargaining power, may be held unenforceable as:
- A 'scope of work' provision in a construction contract is important primarily because it:
Última revisión: · proceso editorial
Sen Lin, Fundador de PrepPass · Verificado con California CSLB Contractor License Law & Business Exam · Cómo revisamos
Revisado por Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verificar)