What is the amount withheld from payment throughout the project known as?

The term that describes the amount withheld from payment throughout a construction project is known as retainage. Retainage is a common practice in the construction industry, where a certain percentage of the payment due to contractors and subcontractors is held back until the project is completed satisfactorily. This serves as a form of security for the project owner, ensuring that the work is completed according to the contract terms and to the owner's satisfaction. Retainage motivates the contractor to resolve any outstanding issues and ensures that the project is finished in quality accordance with the contractual specifications.

In contrast, a deposit typically refers to an upfront payment made before work begins, which secures the contractor's commitment but does not involve withholding payments throughout the project's duration. A contingency fund is set aside for unexpected costs that may arise during the project, rather than involving withholdings from regular payments. An escrow account holds funds securely for future payments but is not specifically related to retaining amounts during the course of a project based on performance or completion criteria.