1Retention Clause Samples
The Retention clause establishes the portion of payment that is withheld by one party, typically the client, from the total amount due to the contractor or service provider until certain conditions are met. In practice, this means a specified percentage of each payment is retained throughout the project and only released after the contractor has fulfilled all contractual obligations, such as completing the work to a satisfactory standard or after a defect liability period. The core function of this clause is to provide financial security and leverage, ensuring that the contractor completes the work properly and addresses any defects that may arise before final payment is made.
1Retention. The Company does hereby agree to employ the Executive for the Period of Employment (as such term is defined in Section 2) on the terms and conditions expressly set forth in this Agreement. The Executive does hereby accept and agree to such employment, on the terms and conditions expressly set forth in this Agreement.