A 'retention' (retainage) provision in a construction contract generally allows the owner to:
Explicación
A retention or retainage clause lets the owner withhold part of each progress payment as security that the contractor will finish properly and correct defects, releasing it after satisfactory completion or acceptance (c). The percentage is no longer open-ended: Public Contract Code §7201 caps most public works at 5%, and Civil Code §8811 caps private works at 5% for contracts entered into on or after January 1, 2026, leaving the older 10% practice only for pre-2026 contracts and the statute's narrow exceptions. (a) is wrong because retention is money held back, not a claim on the contractor's property. (b) confuses retention with an administrative charge — retention is the contractor's own earned money, held temporarily, not a fee. (d) is wrong because the withheld money is paid when the conditions are met; a warranty period does not license the owner to keep deferring it.
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