policy on retention

ALH_4

This is what we have in our Special Provisions. This is for public work, but maybe it's worth posting.

"...After the Contractor submits their Application for Payment the Owner will have twenty one (21) calendar days to review and approve payment for the entire amount of the request, or the undisputed portion of the request. During this same time period the Engineer will review the payment request and make recommendations to the Owner on the items which the Engineer feels are approved for payment, and which items are in dispute. Items which are in dispute will be documented in writing and provided to the Contractor for correction and resubmission on subsequent payment requests. The undisputed portion will be approved for payment, and will be paid within seven (7) calendar days after approval. Five percent (5%) of all partial payments will be witheld from payment until the completion of the project as discussed below.

The Final Application for Payment, including release of the five percent (5%) retainage, may only be submitted after the Engineer has signed the Certificate of Substantial Completion and all punchlist items have been addressed as described in the Supplementary Conditions."

Bill Clinton_5

policy on retention

We do a lot of high end homes. About two thirds of the time, 10% retention is held back. As these high end homes can take up to two years to complete, sometimes retention gets held a long time. Usually, after six months or so, I can lean on the general to pay up retention accrued so far, and usually they do.

Still it gripes me to be effectively helping finance the customer's castle on the hillside. I should be getting interest on that money, I think.

Just wondering what other contractors' policies might be. Should be worth a discussion: What do you do?

Bill