Under the Builder's Act, what percentage of money can an owner hold back?

Under the Builder's Act, an owner can hold back a percentage of money to ensure that the contractor fulfills their obligations appropriately. The correct percentage is 10%. This holdback serves as a safeguard for the owner to ensure that all work is completed to standard, and it provides a level of financial security against any potential breaches of contract.

The holdback allows owners to retain a portion of the payment until they can confirm that the work has been completed satisfactorily. This practice encourages contractors to complete their work on time and to the required quality because they know that a portion of their payment will be withheld until they meet their contractual obligations.

Other percentages provided in the options do not align with the regulations stipulated in the Builder's Act regarding holdback practices, emphasizing the importance of understanding how much should be withheld for effective management in construction projects.