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It is important for both project owners and contractors to familiarize themselves with the applicable legal framework to ensure compliance. The retention amount is typically a percentage of the contract value and is predetermined in the construction contract. It can range from 5% to 10% of the total contract value, depending on industry norms and the specific project requirements. Disputes may arise if these conditions are not clear or if one party feels they are not adequately met. In addition to state laws, there are also industry guidelines and best practices that provide guidance on retainage in construction contracts. In …