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NASCLAProcurement and Contracting Requirementsmedium

Why is retainage withheld from progress payments?

Correct Answer

A) To provide security for completion and correction of the work.

Retainage holds back part of payment as security until required completion milestones are met.

Answer Options
A
To provide security for completion and correction of the work.
B
Use the payment application file as the backup record for retainage purpose
C
Accept the price information as submitted and leave retainage purpose unverified
D
Use a later change request to handle retainage purpose after award

Why This Is the Correct Answer

Retainage holds back part of payment as security until required completion milestones are met.

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