Retention
Definition
Retention (or retainage) is a percentage of the contract sum withheld by the employer or main contractor during the course of a construction project. It provides a financial security against defective work. Retention is typically held in two halves: the first half is released on practical completion, and the second half at the end of the defects liability period.
In construction tendering, this means...
Retention represents a significant cash flow challenge for subcontractors and GCs alike. On a $5M project with 5% retention, up to $250,000 of earned money may be withheld. Managing retention release, knowing what has been certified, what is outstanding, and chasing delayed releases, is a routine administrative burden that Takshy helps track.
Takshy automates the parts of the tendering process that involve retention, extracting scope, managing documents, and keeping your workflow organised from first document to final award.
Automate your tendering with Takshy
Understanding the terminology is step one. Takshy handles the rest, from extracting scope from project documents to sending structured RFQs and managing the returns.
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