The contractual practice of temporarily retaining payment that would otherwise be due to a contractor because the contractor has not met a contractual obligation or has failed to comply with specific contract requirements. Depending on the contract terms and applicable regulations, a contracting officer may withhold payments for reasons such as unsatisfactory performance, labour standards violations, inadequate accounting systems, deficient business systems, or failure to deliver required contract data. Payment is typically released once the contractor has corrected the underlying issue and satisfied the contractual requirements. Contractors should understand the circumstances under which withholding may apply, as it can affect cash flow, contract performance, and ongoing compliance.
Withholding
The contractual practice of temporarily retaining payment due to a contractor until it corrects a performance or compliance shortfall.
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GovEagle and VisibleThread both ground AI in your own content, but they differ on requirements, bid workflow and deployment. See which fits your federal proposal team.
VisibleThread ships constantly, some months a single platform release, some months a run of smaller fixes behind it. This is where we'll keep a running log of what's new, most recent first, so you can see where the product is moving without digging through changelogs. We'll keep adding to it as we ship.
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Related Glossary Terms
The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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