Retention for Services Sample Clauses

The 'Retention for Services' clause establishes that a portion of payment due for services rendered will be withheld by the client until certain conditions are met, such as satisfactory completion of the work or the expiration of a defect liability period. Typically, this means that instead of paying the full amount immediately, the client retains a specified percentage—often 5-10%—until the contractor fulfills all contractual obligations. This clause serves to incentivize the service provider to complete the work to the required standard and provides the client with financial security in case of defects or incomplete performance.