A subcontractor submits a payment application for $125,000. The general contractor retains 5% and pays the subcontractor within 7 days of receiving payment from the owner. How much should the subcontractor receive?
Correct Answer
C) $118,750
Payment to subcontractor = $125,000 - ($125,000 × 5% retainage) = $125,000 - $6,250 = $118,750.
Why This Is the Correct Answer
Payment to subcontractor = $125,000 - ($125,000 × 5% retainage) = $125,000 - $6,250 = $118,750.
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A contractor submits a payment application for $125,000. The contract specifies 10% retainage on all payments. What amount should the owner pay?
