Cost & contract · Glossary
Retention
Also called: retainage, holdback
Retention is the portion of each contractor draw payment a homeowner withholds until project completion, typically 5–10%. The retained amount is released only after the punch list is signed off and any required lien waivers are filed. Retention protects against incomplete work.
Why this matters for renovation projects
Retention shows up on permits, contracts, or estimates that Renology covers across LA, San Diego, San Francisco, Seattle, Portland, and Denver. Most homeowners encounter the term once a project is already mid-flight, when there is no time to learn its mechanics without slowing the contractor. Knowing what it means before signing the contract is the difference between a clean project and an avoidable surprise. For how Renology calibrates cost ranges against permit valuations and contractor invoices, see the methodology.