Retainage
Retainage is the American term for retention money in building contracts. In Australia we say retention: a percentage withheld from progress payments as security.
Ask Chalkline about this →Retainage is the North American term for retention money in building contracts. In Australian construction, the correct and common term is retention. Both describe the same concept: a percentage (typically 5%) withheld from each progress payment as security against defects or non-completion.
Builders and subbies in Australia will see “retention” in their HIA, MBA, and ABIC contracts. The term “retainage” occasionally appears in multinational project documentation or international construction management software. If you see it, it means the same thing as retention.
Also known as: retention, retention money.
Category: Contracts & commercial.
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Last updated: 2026-05-08. Verified: 2026-05-08. Quarterly review for currency.