The term used to refer to a percentage of progress payments held by the owner until project completion is called what?

The correct term for a percentage of progress payments withheld by the owner until the completion of a project is referred to as "retainage." Retainage serves as a form of financial security for the project owner, ensuring that the contractor or subcontractor completes the work as per the agreed contract standards and timeline. By withholding a portion of the payment, often a small percentage, the owner incentivizes the contractor to address any potential issues that may arise before final completion.

In construction contracts, retainage is a common practice. It provides the owner with assurance that the contractor will fulfill all obligations to the satisfaction of the owner. Once the project is completed, the retained amount is usually released to the contractor, assuming all contractual terms have been met. This mechanism helps manage the risks associated with construction projects, which can be subject to delays or defects.

The other choices do not capture this concept accurately: a deposit typically refers to an initial payment made to secure a contract; advancement fees are often associated with loans or financial arrangements rather than construction projects; and progress payments are the installments made throughout the project's timeline, but they do not specifically denote the amount held back until completion.