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.