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

The term that specifically refers to a percentage of progress payments held by the owner until the completion of a project is known as retainage. This practice is commonly utilized in construction contracts to ensure that the work is completed satisfactorily. By withholding a certain percentage of the total contract amount, the owner has a form of security that incentivizes the contractor to complete the job in accordance with the contract specifications and to address any potential deficiencies.

Retainage serves as a financial mechanism to protect the interests of the owner and to ensure that the contractor will be motivated to finish the project to a high standard. Once all work has been completed and any necessary inspections or quality checks have been satisfied, this withheld amount is typically released to the contractor.

Other terms listed do not capture the same meaning as retainage. For instance, deposits generally refer to payments made in advance before work begins, while advancement fees indicate upfront fees or initial payments for services. Progress payments denote payments made for work completed at various stages; however, they do not imply withholding any percentage until project completion. Thus, retainage is the most accurate term to describe the specified scenario.