Retainage vs. Retention

Question

I want to know what is the difference between retainage and retention. I know that both are about withholding a last payment until the project is really complete from the client's perspective, but I can't see any difference between the two. Are they both equivalent (have the same meaning) from a project management perspective?

Answer 1

Different states have different practices and terminology on this question.  In my experience, retainage and retention are the same thing and the terms are used interchangeably.  Whether you call it retainage or retention, it typically represents an amount withheld from the contractor, either for each progress payment (as is required on many government contracts) or at the end of the project.

Answer 2

Although most project managers confuse retainage and retention, there is a difference between the two.

Retainage is when a portion of the payment of the whole contract is retained until the project is deemed to be accepted by the client.

Retention, on the other hand, is when a portion of each stage payment (see http://www.projectmanagementquestions.com/3581/what-is-a-stage-payment to understand what a stage payment is) is withheld, until the project is accepted.

There is another difference, retainage means the actual money retained, while retention means the act of retaining money.