Nail the Utah Contractor Exam 2026 – Build Your Future with Confidence!

Question: 1 / 770

If a contract provides retention of 5% of a $135,000 total job price, how much may the owner withhold?

$4,250

$6,750

To determine how much the owner may withhold based on a 5% retention of a total job price of $135,000, it's essential to apply the percentage to the total amount.

First, calculate the retention amount by multiplying the total job price by the retention percentage:

\[

Retention = Total Job Price \times Retention Percentage

\]

\[

Retention = 135,000 \times 0.05

\]

Calculating this gives:

\[

Retention = 6,750

\]

This shows that the owner may withhold $6,750 from the contractor as retention, which ensures that a portion of the payment is held back until the job is completed satisfactorily. The practice of retention protects the owner against any potential issues with the work performed, such as defects or unfinished work.

Therefore, the total amount that the owner can withhold is accurately calculated to be $6,750.

Get further explanation with Examzify DeepDiveBeta

$7,520

$8,550

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy