Construction Contract Example​

The retention clause within this contract allows the main contractor to withhold a certain percentage of the payment until the subcontracted work is fully completed and meets the required quality standards. The retained amount serves as a financial safeguard to ensure that the subcontractor addresses any defects or outstanding issues before receiving the final payment.

This sub-contract is particularly important for managing financial risks and responsibilities, ensuring that both parties clearly understand their obligations, timelines, and project specifications. It provides a structured framework for resolving disputes and managing changes that may arise during the construction process, fostering a collaborative and accountable working relationship.