On public works, the total retention withheld may not exceed what percent of the contract price?

On public works, the total retention withheld may not exceed what percent of the contract price?

• A. 5%
• B. 10%
• C. 15%
• D. 20%

Answer: (A)

Retention on public works is a holdback from payments to ensure the contractor completes the work and addresses any issues. For these contracts, the total amount that can be withheld as retention is capped at 5% of the contract price. This limit protects the contractor’s cash flow while still giving the agency security that the project will be finished properly. Once the total retention reaches 5% of the contract price, additional withholds aren’t allowed under typical public-contract rules, though other contract terms and final acceptance can affect when and how the retained funds are released.

Retention on public works is a holdback from payments to ensure the contractor completes the work and addresses any issues. For these contracts, the total amount that can be withheld as retention is capped at 5% of the contract price. This limit protects the contractor’s cash flow while still giving the agency security that the project will be finished properly. Once the total retention reaches 5% of the contract price, additional withholds aren’t allowed under typical public-contract rules, though other contract terms and final acceptance can affect when and how the retained funds are released.