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R-08 · Tier 2 · Retainage

Retainage Without Stepdown or Substantial-Completion Release

Retainage is held at 10% or more through final closeout with no sub-scope release.

What MillworkShield looks for

This is the business risk behind the clause.

Risk

The sub's working capital is held hostage to total-project completion it does not control.

Cleaner ask

Reduce retainage at 50% completion and release on Subcontractor's substantial completion.

Reference context

AIA A401 §11.3.2 contemplates retainage reduction and release on sub substantial completion.

Search nearby wording

retainageretentionfinal completionowner acceptance

Related guide

Retainage: when ten percent turns into a free loan

Can we tie retainage release to acceptance of our millwork scope instead of final completion of the entire project, with any holdback limited to specific disputed items?

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