Release of retainage generally occurs after what conditions are met?

• A. After project completion and the lien period expiration
• B. After one year
• C. After certificate of occupancy only
• D. After tax clearance

Answer: (A)

Retainage is money held back by the payer to ensure all work is completed and claims are resolved before final payment. The release typically happens when the project is substantially complete and the lien period—the time allowed for others to file a mechanics’ lien—has expired. If no liens are filed or all liens are cleared, the remaining funds can be paid.

Why the other options don’t fit: a fixed time like one year isn’t tied to project closeout or lien rights; releasing retainage based only on a certificate of occupancy doesn’t address potential outstanding liens or incomplete work; tax clearance isn’t a standard trigger for closeout of construction payments.