Initial Retainage Amount Clause Samples
The Initial Retainage Amount clause defines the percentage or fixed sum of payment that will be withheld from the contractor’s progress payments at the start of a project. Typically, this amount is set aside by the project owner as a form of security to ensure the contractor completes the work satisfactorily and addresses any defects or outstanding items. By specifying the initial retainage, the clause helps protect the owner’s interests and incentivizes the contractor to fulfill all contractual obligations before receiving full payment.
Initial Retainage Amount. Owner shall withhold from each progress payment made to the Construction Manager five (5) percent of the payment as retainage. Retainage shall not be held on Owner Direct Purchases.
Initial Retainage Amount. Owner shall withhold from each progress payment made to the Construction Manager ten (10) percent of the payment as retainage until fifty (50) percent completion of services. After fifty (50) percent completion the Owner may reduce to five (5) percent the amount of retainage withheld from each subsequent progress payment made to the Construction Manager at the Owner’s sole discretion. Fifty (50) percent completion shall be determined as the point at which the Owner has expended fifty (50) percent of the total cost of the Construction Services purchased as identified in the Agreement together with all costs associated with existing change orders and other additions or modifications for the Construction Services provided for in the contract. Retainage shall not be held on Owner Direct Purchases.