The contract allows retainage on progress payments. What does retainage mean in pay-application administration?
Correct Answer
B) A portion of earned payment withheld until later contract milestones or completion
Retainage is a withheld portion of otherwise earned progress payment, held until later milestones or completion under the contract. Other choices confuse retainage with bonuses, taxes, or bid structure.
Why This Is the Correct Answer
Retainage is a withheld portion of otherwise earned progress payment, held until later milestones or completion under the contract. Other choices confuse retainage with bonuses, taxes, or bid structure.
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