Retainage Policy

This policy is intended to provide a standardized means of identifying and accounting for the retainage of funds related to large scale projects. The intended use of this policy is for domestic and international operations and subsidiaries of a company.

This policy states that retainage is an industry practice that allows for the justifiable withholding of a defined amount of funds for a specific time after the completion of a project. These funds are permitted to be withheld by company clients and are meant to provide assurance that engineered projects are functional and within agreed-to specifications.