Glossary
Retainage
Retainage is a portion of each payment that the client holds back until the project is complete, to make sure the work is finished and any defects are fixed.
It's common in construction. The amount and the release conditions are set by the contract, and some states limit them for certain projects; check the rules that apply to yours.
Paid steps don't remove retainage. In a Seequence, retainage is set from the start in the last step, the one that waits for final completion.
Example. On a custom home, the final walkthrough step carries the retainage. It's released once the punch list is closed, under the terms of the contract.
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