A contractor submits Application for Payment #8 requesting $485,000. The contract has 5% retainage, but the architect approves only $465,000 of the requested amount due to deficient work. How much should the owner pay?
Correct Answer
C) $441,750
The approved amount is $465,000. With 5% retainage: $465,000 × 0.95 = $441,750.
Why This Is the Correct Answer
The approved amount is $465,000. With 5% retainage: $465,000 × 0.95 = $441,750.
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