What percentage is retained for contracts valued at $100,000 or more?

For contracts valued at $100,000 or more, the standard retention percentage is 2%. This practice is common in various public contracts to ensure that contractors complete their work satisfactorily and address any necessary corrections or deficiencies that may arise after the project is completed. Retention serves as an incentive for contractors to fulfill their obligations fully and can help protect the interests of the public by ensuring that funds are only released upon satisfactory performance of work.

In public works projects, this retention can often apply until the project is formally accepted, ensuring that any issues that come to light during the warranty period can be addressed with the retained funds. The retention percentage balances the need to motivate contractors while providing a security measure for public entities overseeing the contract.