A public works progress payment is $200,000. If the standard 5 percent retention cap applies, what is the maximum retention on that payment?
Correct Answer
A) $10,000.
Five percent of $200,000 is $10,000.
Why This Is the Correct Answer
Five percent of $200,000 is $10,000.
Why the Other Options Are Wrong
Option B: $7,500.
$7,500. is below the supported result for retention cap; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $8,000.
$8,000. is below the supported result for retention cap; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $10,500.
$10,500. is above the supported result for retention cap; it likely adds scope or money the rule does not allow.
Memory Technique
Percent before dollars; dollars before balance in Reviewing Withheld.
Reference Hint
Study anchor (closed-book): memorize Retention cap from California Code, Public Contract Code Sections 7107 and 7201. / California Code, Public Contract Code Section 7201; know the rule or calculation trigger without relying on exam-room lookup.
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