What is retention money
Retention money is concept related to contract payment when a portion of payment is retained from the certified amount. This is very much international practice
Purpose of retention money
The money is retained for two reason.
1. Completion of work
The first reason to retain money is to require the contractor to complete the work. this contract may not be interested to complete the project if he is given the full payment of work performed if he get some other opportunity of investment or for any other reason.
2. Quality
The other reason is to retain money to maintain the quality in remaining work to be performed by the contractor.
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