Cost Systems - I

The same policy to retainage; the contractor usually keeps the subcontractors' retainage sums until after the owner pays his retainage. The retainage rate held from subcontractors is usually the same but sometimes higher than that the owner uses in the main contract (Hinze & Tracey 1994). Even after the owner pays the retainage, the general contractor may delay payment to subcontractors.