Is the final payment and retainage released during closeout before all contract work is finished?

The statement is false. In a typical construction contract, the final payment and retainage are usually not released until all contract work is completed. This ensures that the contractor has fulfilled all obligations stipulated in the contract, allowing the owner to hold back payment until they are fully satisfied with the completed work. Retainage specifically serves as a financial incentive for the contractor to finish the project properly, addressing any outstanding issues that may arise at the closeout.

By withholding the final payment and retainage until all work is completed to the owner's satisfaction, it protects the interests of the owner and ensures that the contractor performs according to the contractual terms. If the final payment and retainage were released before the work was fully finished, it could lead to disputes or incomplete work, ultimately jeopardizing the project's success.