What is the retention percentage applicable to each payment request?

What is the retention percentage applicable to each payment request?

• A. 10% retention.
• B. 5% retention.
• C. 15% retention.
• D. 0% retention.

Answer: (A)

Retention is the portion of each payment that the owner withholds to protect against unfinished work or defects and to ensure proper finalization of the project. In UAP Document 301, the standard amount withheld from every payment request is 10%. This means 10% of each progress payment is held back and released when the contract’s conditions for release are met—typically after substantial completion and once all punch-list items are addressed and any required waivers are obtained. The 10% level provides a financial incentive for finishing work and fixing issues. Smaller or larger percentages would reflect different contract terms, and 0% would remove this protective mechanism, which is uncommon in these documents.

Retention is the portion of each payment that the owner withholds to protect against unfinished work or defects and to ensure proper finalization of the project. In UAP Document 301, the standard amount withheld from every payment request is 10%. This means 10% of each progress payment is held back and released when the contract’s conditions for release are met—typically after substantial completion and once all punch-list items are addressed and any required waivers are obtained. The 10% level provides a financial incentive for finishing work and fixing issues. Smaller or larger percentages would reflect different contract terms, and 0% would remove this protective mechanism, which is uncommon in these documents.