How Do You Spell RETAINAGE?

Pronunciation: [ɹɪtˈe͡ɪnɪd͡ʒ] (IPA)

Retainage is a term used in the construction industry to describe the portion of a contract payment that is held back by the customer as a safeguard against incomplete or unsatisfactory work. The spelling of retainage follows the standard English pronunciation rules, with the stress on the second syllable. The IPA transcription is /rɪteɪnɪdʒ/. The sound "ei" in the first syllable represents the diphthong "eɪ", and "dg" in the second syllable is pronounced as the "ʤ" sound.

RETAINAGE Meaning and Definition

1. Retainage, also known as retention or retention money, is a financial term used in various industries, particularly in construction and service contracts. It refers to a specific percentage of the total contract value that is withheld or retained by the client or the party providing the payment. This amount is typically held back as security and serves as a form of protection against potential deficiencies, defects, or non-completion of the agreed-upon work.

   The purpose of retainage is to incentivize the contractor or service provider to fulfill their contractual obligations satisfactorily. The withheld funds act as collateral until all the work is completed to the client's satisfaction, often including a grace period allowing for potential warranty claims or other issues that may arise. Contractors or service providers may also have their retainage reduced if they fail to meet specified deadlines or quality standards.

   Retainage is usually stated as a percentage of the contract value, such as 5% or 10%. The specific terms and conditions regarding retainage are typically outlined in the contract between the parties involved. Once the work is completed to the client's satisfaction, and all requirements have been met, the retainage is released, allowing the contractor or service provider to receive the final payment.

   It is important for both parties to clearly understand the terms and conditions relating to retainage to ensure a smooth contractual relationship and to avoid any misconceptions or disputes.

Etymology of RETAINAGE

The word "retainage" is derived from the noun "retain". "Retain" has Middle English and Old French origins, coming from the Latin word "retinere", which is a combination of the prefix "re-" meaning "back" or "again", and the verb "tenere", meaning "to hold". Over time, "retain" developed into a verb that means "to keep or hold back" or "to maintain possession of". The suffix "-age" is added to "retain" to form the noun "retainage", referring to the act or process of retaining a portion of payment or funds.