What term identifies money withheld from progress payments to the contractor and paid after completion of the project?

The term that identifies money withheld from progress payments to the contractor and subsequently paid after the completion of the project is "retainage." Retainage is a common practice in the construction industry, where a certain percentage of each progress payment is withheld to ensure that the contractor completes the project satisfactorily. This practice provides a financial incentive for the contractor to fulfill their obligations and rectify any deficiencies in the work performed.

Retainage serves several purposes, including ensuring quality and timely completion of the project. Once the project is finished and all contractual duties have been met, the retainage is typically released to the contractor. This mechanism protects the interests of the owner or client by holding back a portion of payment until the work meets contract specifications and is deemed acceptable.

The other terms listed do not accurately describe the process of withholding payment specifically for this purpose. Withholding generally refers to a broader concept of not paying certain amounts, but it does not have the specific emphasis on finalized projects like retainage does. Escrow involves holding funds in trust by a third party until certain conditions are met, while a deposit usually refers to an initial payment or partial payment made before services are fully rendered. Each of these alternatives lacks the focused contractual context provided by retainage in construction contracts.