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The following clarifications in accordance with the provisions of P.D. 1594 are hereby
made in relation to the application of the 10% retention to contract payments:
2. The retention shall be based on the amount due the contractor prior to any
deduction and shall be retained from every progress payment until fifty percent
(50%) of the value of the works, as determined by the government, are
completed. If after fifty percent completion, the work is satisfactorily done and is
on schedule no further retention shall be made otherwise the 10% retention shall
continue to be imposed.
3. The total 'retention money' shall be due for release upon final acceptance of the
works.