Landscape Architect Registration Examination (LARE) Practice Exam

To determine the amount to hold from the contractor's sixth payment request, you need to calculate the retainage based on the specified rate of 10%. Retainage is a percentage of the contract payments that is withheld until the project reaches completion to ensure that the contractor finishes the work satisfactorily.

In this scenario, with a payment request of $150,000, applying the 10% retainage rate involves multiplying the payment amount by 0.10:

$150,000 x 0.10 = $15,000.

However, the key aspect in this case is to recognize that retainage applies only to the payment requests up to this point and not the cumulative payment total. The correct understanding requires that you consider the specific amount held from this individual payment request, rather than assuming that all previous amounts contribute to the percentage being held here.

Based on the information:

If the entire amount of $150,000 is subject to a 10% retainage, the calculation leads to the maximum amount retained from that specific payment request. This would typically suggest a hold of $15,000.

However, if the question specifies how much of the prior payments has been retained already or other adjustments which lower the apparent amount to $9,000