What type of claim is an owner entitled to regarding retainage?

An owner is entitled to claims for direct payments regarding retainage because retainage represents a portion of the payment that is withheld until the project is satisfactorily completed. This practice helps ensure that the contractor remains incentivized to finish the work according to the terms of the contract. When an owner makes a claim for direct payments, they are essentially seeking the release of the retainage that has been withheld. This claim is tied to the completion of contracted work and the expectation that proper services have been rendered, thus justifying the release of funds.

Claims for delays, additional services, or penalties address different aspects of contractual obligations and disagreements. Claims for delays often focus on compensation for time lost due to various circumstances but do not pertain specifically to the retainage process. Claims for additional services would relate to extra work that was not part of the original contract, while claims for penalties involve issues such as violations of contract terms or timelines, none of which are directly connected to the owner's right to claim released retainage.