Which group faces a greater problem with retentions during a project?

Subcontractors who complete early often face greater issues with retentions during a project because they may be in a position where the general contractor retains a portion of their payment until the entire project is completed. This is especially true if the subcontractor finishes their work ahead of schedule. The retention is intended to ensure that subcontractors return to address any potential issues or defects after the majority of work has been completed. Therefore, even if they have fulfilled their obligations early, the funds retained might not be released until the project as a whole is deemed satisfactory, which can create cash flow challenges for those subcontractors.

In contrast, general contractors generally have more leverage over the retention process as they manage the entire project and can negotiate terms that work to their advantage. Suppliers face different types of issues related to payment and usually have established contract terms dictating their payment structures. Homeowners typically are not involved in contracts regarding retention in the same way as subcontractors; they generally pay for the completed work upon satisfactory completion without the complexities related to retention often seen in contractor-subcontractor relationships.