The release of retainage is usually accompanied by which document?

• A. Building permit
• B. Lien waiver
• C. Certificate of occupancy
• D. Warranty agreement

Answer: (B)

When a portion of a payment is held back as retainage, releasing that amount is paired with a lien waiver. A lien waiver is a document in which the party who received payment agrees not to file or enforce a mechanic’s lien for the portion released. This protects the project owner from future claims tied to that money and helps finalize the project financially. In practice, you’ll often see a conditional or unconditional lien waiver tied to the release of retainage, ensuring that once the funds are paid, lien rights are relinquished (subject to the type of waiver). The other options—building permits, certificates of occupancy, and warranty agreements—serve unrelated purposes (permissions to build, rights to occupy, and post‑construction coverage), so they don’t address the lien protection needed when retainage is released.