The construction industry is unique in many ways. The construction parties are entitled to lien rights, for instance, which allow them to secure payment from felonious clients. Actually, not all industries defend their stakeholders from non-payment and it goes to show how frequent conflict payments arise in the construction sector.
On the other hand, retainage is another different feature of construction. And unlike the retainage is a very controversial topic amongst construction participants. Retainage is nine letters long, yet for most construction professionals, it’s a four-letter debated word. In fact, not all contractors, subs and material suppliers are very keen about it, but retainage remains to be widely used across fifty states.
What is retainage exactly, and what are the things you must know about this matter like a contractor? This practical guide breaks down everything you must learn to know about retainage.