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retention also known as retainage in the u.s is an amount of money held back from a contractor or nominated subcontractors during the term of a construction project this is a unique practice specific to the construction industry but within the industry its extremely popular most construction contracts dictate that a certain percentage of the contract price often around five percent is withheld from the contractor until the entire project is substantially completed this can create cash flow challenges in an already cash poor industry but before we delve into this topic further could you please take the time to like this video and subscribe to our channel we now have a library of over 100 videos that specifically focuses on quantity surveying so after this video why dont you take a look at some of our others okay lets get back into it now youre probably wondering what is the purpose of retention is it just a sneaky way to get some of the contractors or subcontractors cash well the ea