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Retainage
Retainage is money held back from each payment until the end of the job.
Why it matters
Retainage creates a reason to finish punch list items and close out cleanly.
Where people get this wrong
Retainage is not about being mean. It is about finishing strong. Retainage should follow contract terms and local rules.
Real-world example
A project looks done, but small fixes drag on for months. Retainage is the gentle pressure that helps close the loop.
Where this hits your build
This comes up early, before construction starts. It affects your contract, your budget, or both. Misunderstanding it can cost you money or leverage.
Most people do not just struggle with terms. They struggle with the decisions tied to them.
See how HouseChalk helps with the decisions behind terms like this