Retainage (also called holdback) is a percentage of contract payments withheld until construction projects are satisfactorily completed. Typically 10% of each progress payment is held back, accumulating until the contractor completes all work, corrects deficiencies, and provides required documentation. Holdback protects the owner (the municipality) by ensuring contractors finish work properly and protects subcontractors and suppliers by reserving funds to pay them if the general contractor defaults. Provincial construction lien legislation governs holdback requirements and release procedures. After project completion and a specified waiting period, holdback is released to the contractor. Holdback is distinct from performance bonds, which provide different protection.