CONSTRUCTION RETAINAGE
Policy Statement
DND will require retainage be withheld from construction requisitions on all projects.

Retainage Amounts:
Retainage, in the amount of ten percent (10%) of the value of construction costs incurred for the project, shall be withheld from each requisition.

Ten percent (10%) may be reduced to five percent (5%) retainage of the value of each requisition for construction costs subsequent to project construction reaching fifty percent (50%) completion.

Retainage shall be released upon receipt by DND of the following:

Architects Certificate of Completion.

A Certificate of Substantial Completion issued by DND (shall not be issued until all Punch List Items have been completed)

A reconciliation of Homeowners Home Inspection Report by DND, Developer, Contractor and Homebuyer.

Final Lien Waivers from the project contractor and other laborers, sub-contractors and material providers.

Certificate of Occupancy by the Inspectional Services Department.

Certification by employees and/or agents of DND and other Lenders that the construction work, including completed punchlist items, is acceptable and consistent with the approved construction budget, plans and specifications.

If completion of certain construction items must be delayed for an extended period (i.e. landscaping/planting awaiting Spring, exterior painting pending appropriate weather/temperature), Seasonal Items, Two Hundred Percent (200%) of the value of these DND-approved, monetized items shall be retained until such items have been completed to the satisfaction of DND.

6-1 (11/02)

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