What is retainage?
A percentage withheld from each contractor payment until completion or milestones are met, giving the contractor and subcontractors an incentive to finish and deliver lien-free.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.