What is the usual purpose of retention money deducted from a contractor's interim payments?
Correct answer: D. To provide security for proper completion and defect correction
- A. To finance the client's unrelated projects
- B. To pay customs duties on imported equipment
- C. To replace the contractor's performance guarantee in every case
- D. To provide security for proper completion and defect correction
Explanation
Retention provides the client with financial security until the work is properly completed and relevant defects are corrected. It is normally released according to the contract's completion and defects provisions.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Construction Management and Estimation
Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
Practise Construction Management and Estimation
80 free Construction Management and Estimation MCQs from Civil Engineering, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Civil Engineering questions like this
Civil Engineering is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Construction Management and Estimation questions
Under open competitive tendering, which bidder is normally selected for award?
In a construction cost control system, what does an S-curve commonly show?
What is the main purpose of a preliminary estimate prepared before detailed design is complete?
What do liquidated damages in a construction contract generally represent?
In construction estimating, what does labour productivity usually express?
In a project network, what does total float of an activity indicate?