What does progressive releasing of hold backs refer to?

Progressive releasing of hold backs refers to the practice of allowing partial payments to be released at specific milestones or stages of a project before it reaches substantial performance. This method is used to ensure that contractors receive some payment during the construction process, rather than waiting until the final completion of the work to receive full compensation.

By progressively releasing hold backs, clients can maintain a level of control over the project while also providing necessary cash flow to contractors, which can help facilitate timely completion of work. This approach encourages timely progress by the contractor as they are rewarded for meeting predetermined stages or benchmarks.Prior to substantial performance, it is typical for hold backs to be implemented to ensure that the contractor meets the contractual obligations and specifications satisfactorily. Thus, option B accurately reflects this practice.