When is retention released on an A201 project?

• A. Upon final payment
• B. After final completion or acceptance of punch list work
• C. At project initiation
• D. At the end of the first year

Answer: (B)

Retention is a holdback of money from payments to the contractor, held by the owner to ensure the work is completed and deficiencies are addressed. Under A201, the release of that retainage happens when the project reaches final completion or when the punch list work has been completed and accepted. This timing ensures the contractor isn’t fully paid until all work is finished to contract standards and any remaining items flagged on the punch list are resolved. It’s not released at project initiation, nor simply at the end of the first year, and while it often aligns with final payment, the key trigger is final completion or acceptance of the punch list items.