Recruiter's Glossary

Examples: Bid Bond • Force Majeure • Pre-Qualification

Retention

Term from Contracting industry explained for recruiters

Retention is a common term in contracting that refers to holding back a portion of payment from contractors or subcontractors until work is completed satisfactorily. It's like a safety deposit that protects the project owner. Usually, this amount is between 5-10% of the total contract value. The money is held until specific conditions are met, like project completion or fixing any defects. This practice helps ensure quality work and that contractors fulfill all their obligations. Other similar terms you might see are "retainage" or "withholding."

Examples in Resumes

Managed Retention release process for 20+ subcontractors on a major construction project

Negotiated Retainage terms with clients resulting in improved cash flow

Successfully processed over $2M in Retention payments while maintaining detailed documentation

Typical job title: "Contract Administrators"

Also try searching for:

Contract Manager Project Administrator Construction Administrator Commercial Manager Project Controls Specialist Claims Administrator

Where to Find Contract Administrators

Professional Associations

Online Resources

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you handle a dispute over retention release with a difficult subcontractor?

Expected Answer: Should demonstrate experience in conflict resolution, knowledge of contract terms, and ability to negotiate while protecting company interests. Should mention documentation importance and escalation procedures.

Q: What systems have you implemented to manage retention across multiple projects?

Expected Answer: Should show experience with tracking systems, process improvement, and financial controls. Should discuss how they ensure timely release and maintain accurate records.

Mid Level Questions

Q: What factors do you consider when setting retention rates for different subcontractors?

Expected Answer: Should discuss contractor history, project risk, industry standards, and contract value. Should mention balance between risk management and contractor relationships.

Q: Explain your process for retention release at project completion.

Expected Answer: Should outline steps including inspection, documentation review, lien waivers, and payment processing. Should demonstrate understanding of compliance requirements.

Junior Level Questions

Q: What is retention and why is it important in construction contracts?

Expected Answer: Should explain basic concept of withholding payment as security, typical percentages, and purpose of protecting project owner and ensuring work completion.

Q: What documentation is typically required for retention release?

Expected Answer: Should list basic documents like completion certificates, warranties, lien waivers, and final inspections. Should understand basic process flow.