The retainage percentage typically kept by the owner for contract completion is?

In construction contracts, retainage is a percentage of the payment withheld by the owner until the project is completed to ensure that the contractor fulfills all obligations. A retainage percentage of 10% is commonly used in various construction contracts, including residential projects. This percentage strikes a balance between providing a financial incentive for timely completion and protecting the owner from potential defects or unfinished work.

By holding back 10% of the total contract amount, the owner can ensure that the contractor remains motivated to address any outstanding issues or complete punch list items. Once the project reaches completion and passes necessary inspections, the withheld retainage is typically released to the contractor, encouraging a successful conclusion to the project. This practice is widely accepted in the industry, making the 10% retainage a standard approach in many contracts.