A contractor enters into a lump sum contract for $2,850,000 with 10% retainage held until project completion. If the contractor has submitted progress payments totaling $1,900,000 to date, what is the total amount that should have been paid by the owner?
Correct Answer
C) $1,710,000
With 10% retainage, the owner pays 90% of progress payments. $1,900,000 × 0.90 = $1,710,000.
Why This Is the Correct Answer
With 10% retainage, the owner pays 90% of progress payments. $1,900,000 × 0.90 = $1,710,000.
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