Retainage is typically withheld from payments to the contractor by which party?

• A. Architect
• B. Lender
• C. Subcontractor
• D. Owner

Answer: (B)

Retainage is a holdback of part of what the contractor would be paid, used to ensure the project is completed properly and any punch-list items are addressed. This money is typically withheld by the project’s owner (often administered or verified by the owner’s representative, such as the architect) from progress payments to the contractor. The lender may provide financing, but they don’t normally hold back the contractor’s pay as retainage. The purpose is to have funds available to cover incomplete work or defects and to secure performance, with the withheld amount released once the work is substantially complete and all contractual conditions are met.