Which of the following is NOT a typical purpose of retainage?

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Multiple Choice

Which of the following is NOT a typical purpose of retainage?

Explanation:
Retainage is kept from progress payments to add security for the project owner and ensure the job moves toward completion. The main reasons are to encourage timely completion by giving the contractor a continued stake in finishing on schedule, to make sure funds are available to cover punch list items at the end, and to protect against liens by maintaining a reserve to satisfy unpaid subcontractors or suppliers. Earning interest for the lender isn’t a typical objective of retainage; the withheld money isn’t intended as a source of interest income, but as a tool to secure performance and settlement of potential claims.

Retainage is kept from progress payments to add security for the project owner and ensure the job moves toward completion. The main reasons are to encourage timely completion by giving the contractor a continued stake in finishing on schedule, to make sure funds are available to cover punch list items at the end, and to protect against liens by maintaining a reserve to satisfy unpaid subcontractors or suppliers. Earning interest for the lender isn’t a typical objective of retainage; the withheld money isn’t intended as a source of interest income, but as a tool to secure performance and settlement of potential claims.

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