346. Retention money.

The contract may provide that the employer is entitled to deduct from sums due to the contractor by way of interim payment, a specified percentage as 'retention' money. The retention money is retained by the employer as security for the due performance of the contract by the contractor and as a fund to be drawn upon either to complete the work or to rectify defects should the contractor fail to do so. Some contracts provide for the employer's interest in the retention to be fiduciary as trustee