Updated about 11 years ago on . Most recent reply
Contractor Retainage
A basic principal in dealing with contractors is to not pay for work until it is complete. With projects with multiple draws to ensure the project is complete it is important to withhold retainage.
Retainage is a standard construction practice where 5-10% of progress payments are withheld until the entire project in complete.
Basically you are holding onto the contractors proffit until the project is complete. If a contractor can't afford this they may not have the financial stability you need in a contractor.
Has anybody used retainage on their projects?
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@Adam Anderson all of us experienced people, or have employees instead of contractors. Also get a lien waiver with final payment