NCIDQ Interior Design Professional Exam (IDPX) Practice Exam 2026 - Free Interior Design Practice Questions and Study Guide

Retainage serves as a financial safeguard for the owner in a construction project primarily by withholding a portion of the payment to the contractor until certain conditions are met. By retaining a percentage of the total payment, typically until the project is completed, it ensures that the contractor has a financial incentive to finish the work to the owner's satisfaction. This helps protect the owner from potential issues related to incomplete work; should the contractor fail to complete the project as specified in the contract terms, the owner can use the retained funds to encourage completion or to hire another contractor to finish the job. Retainage ultimately helps to ensure that the contractor maintains high standards in both quality and completion, aligning their interests with those of the owner throughout the project timeline.