Cover retention
An amount withheld from interim payments already during construction, securing the client against overpayment and defects in the building phase.
The cover retention is withheld from interim payments already during construction, in contrast to the retention money, which secures the warranty phase. It protects the client during the building phase, for instance against overpayment relative to the progress of the works or against defects still outstanding.
With the final invoice the cover retention is settled and often converts into the retention money. Its amount and the relevant conditions follow the contractual agreement, frequently on the basis of ÖNORM B 2110; it can be replaced by a guarantee.
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Legal basis
Statutory texts for orientation; the version in force at the relevant time prevails.
This explanation gives a general overview of Austrian law and does not replace advice in an individual case. The specific circumstances of your construction project are always decisive.
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