Subcontract Retention

Subcontract retention is a percentage of a committed amount that is held until a specified date after the order is complete. Retention processing applies to on-going projects and applies only to services lines. Retention is not applicable to inventory-based purchase order lines where the full cost of the product is due upon receipt of the product.

Note: In some industries, subcontract retention may be called retainage. Thus, the terms retainage and retention may be used interchangeably.

See Processing Retainage.