News & Analysis as of

Subcontractors Retainage

Miller Nash LLP

[Webinar] Construction Series—Retainage Options in Oregon & Washington - July 9th, 9:00 am - 10:30 am PT

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Oregon and Washington now allow contractors and subcontractors to avoid cash retainage by posting a surety bond with the owner, on both public and private/commercial construction projects. The process is similar in both...more

Snell & Wilmer

Retainage in the Southwest: A Look Into Arizona and New Mexico Retainage Laws

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By Craig K. Williams, David W. Wilhelmsen, and Amanda M. Manke Retainage is a practice, standard in the construction industry, of withholding predetermined portions of payments due to the contractor until the project is...more

Bradley Arant Boult Cummings LLP

Mississippi Passes New Retainage Law Governing Private Construction Jobs

Construction contracts for private projects will soon be subject to a new retainage law in Mississippi. On April 19, 2024, Gov. Tate Reeves approved SB 2762 into law, and after July 1, 2024, most construction contracts on...more

Snell & Wilmer

Significant Changes to Retainage Law in Oregon Will Benefit Contractors and Require Review of Oregon Construction Contract Forms...

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Under HB 4006, which was effective on March 7, 2024, the Oregon legislature sought to improve retainage law in two ways. First, it allows general contractors and subcontractors to post a retainage surety bond to avoid having...more

Davis Wright Tremaine LLP

Escrow No More: A New Era for Oregon's Construction Retainage Law in 2024

On March 7, 2024, the Oregon legislature enacted a significant change to the state's law on retainage requirements for public and private construction projects. The new law introduces options for contractors to receive full...more

Cozen O'Connor

New York Sets Maximum Construction Contract Retainage at 5% for Private Projects

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On November 17, 2023, Governor Kathy Hochul signed Senate Bill 3539, amending Section 756-a and Section 756-c of the New York General Business Law (more commonly referred to as the Prompt Payment Act) to set the maximum...more

Fox Rothschild LLP

New York Caps Retainage at 5% On Private Construction Projects, Permits Contractors to Submit Final Invoice Upon Substantial...

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New York has made changes to its Prompt Payment Act (N.Y. Gen. Bus. Law §756) Legislation, which Gov. Kathy Hochul signed into law on November 17, 2023, provides that: • retainage on private construction projects is capped...more

Cole Schotz

New York Amends Its Law on Withholding of Retainage and Final Invoicing on Private Construction Projects

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On November 17, 2023, Governor Hochul signed a bill placing significant restrictions on the amount of retainage that can be withheld from contractors and subcontractors, and permitting the earlier submission of final billing...more

Harris Beach PLLC

New York Changes Law on Retainage Payments for Private Development Projects

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A newly-enacted amendment to the New York General Business Law is designed to reduce delays in final payments to contractors, limit the amount of the contract sum (“retainage”) that can be withheld by and revises the...more

Smith Gambrell Russell

New York Amends “Prompt Payment Act” to Limit Retainage

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On November 17, 2023, Governor Kathy Hochul signed Senate Bill 3539, which amended Section 756-a and Section 756-c of the New York General Business Law (commonly known as the Prompt Payment Act), which applies to all private...more

Miller Nash LLP

[Webinar] Retainage, Back Charges, and Withholdings—Law and Best Practices in Oregon & Washington - October 24th, 9:00 am - 10:30...

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No matter your tier in the construction contracting chain, understanding the nuanced rules and procedures about retainage, back charges, and other payment withholdings is critical to managing cash flow and protecting your...more

Stoel Rives LLP

New Washington Law Applies Limitations to Retainage on Private Construction Projects

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On May 9, 2023, Washington Governor Jay Inslee signed into law Senate Bill (SB) 5528, which limits the percentage of retainage withheld from contractors on private construction projects in Washington....more

Davis Wright Tremaine LLP

Put a Cap on It: The Impact of 2023 Washington Retainage Law for Private Projects

New private project retention cap matches that for public construction projects and takes effect July 23 - This year, the Washington State Legislature approved a cap on retainage for private projects. The stated purpose of...more

Bradley Arant Boult Cummings LLP

An Update and Refresher on Retainage

Depending on the state, retainage often provides an owner a security interest in unpaid funds to help cover completion costs or other damages that may later occur by withholding a certain portion (typically 5-10%) of contract...more

Tonkon Torp LLP

Construction Contract Tip – How Can Owners Make Sure Subcontractors Are Paid?

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In my last post, I discussed ways subcontractors can protect themselves from waiving their right to lien before the owner pays. However, what if an owner pays its general contractor (GC), but the funds never make it to the...more

Bradley Arant Boult Cummings LLP

Prime Contractor Beware, No. 3: Tis The Season, but is your Retainage safe under the Tree?

Here’s the Scenario: Try explaining the concept of “retainage” to a businessperson unfamiliar with the construction industry at your next holiday party. Here’s the typical response as she spits out her eggnog: “Wait a minute:...more

Smith Gambrell Russell

New Law Reduces Retainage of Georgia Public Construction Projects

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One of the bills of interest to construction professions in the 2021-2022 session of the Georgia General Assembly, Senate Bill 438, recently passed and alters how much retainage is withheld on public construction projects. ...more

Porter Hedges LLP

Two Key Takeaways from the 35th Annual Construction Law Conference in Texas

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Earlier this month, our firm was well-represented at the 35th Annual Construction Law Conference in San Antonio, Texas. As always, the conference presented great opportunities to visit with colleagues and other construction...more

Bradley Arant Boult Cummings LLP

Retainage – Pay Attention, Mistakes Can be Very Costly

Legislation about retainage has become common place as many states have adopted different limitations, requirements, and schemes. A recent case in Tennessee is a good reminder that you must pay attention to all of the...more

Bass, Berry & Sims PLC

Tennessee Supreme Court Clarifies Application of the Prompt Pay Act

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On June 30, the Supreme Court of Tennessee issued an opinion interpreting the retainage provisions in Tennessee’s Prompt Pay Act (the Act). The opinion has significant implications for construction projects across Tennessee....more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] Payment Terms: A Trap for the Unwary - July 20th, 12:00 pm - 1:00 pm ET

As everyone in the construction industry knows, timely payment is essential. However, the payment process can be complicated, with unexpected issues throwing plans off course. In their second webinar of 2021, Cohen...more

Porter Hedges LLP

Ready To Settle With The General Contractor Or Its Bankruptcy Trustee, Subcontractors Should Proceed With Caution

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The subcontractor did everything right: it did the work, but did not get paid, and thereafter properly perfected a lien. Now, the subcontractor has an opportunity to settle with the general contractor or even its subsequent...more

Butler Snow LLP

Tennessee Construction Legislative Updates

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The Tennessee legislature recently passed the Construction Industry Payment Protection Act (“CIPPA”), SB2681/HB2706, which offers significant changes to the Tennessee construction industry. Not only does the act amend...more

Bradley Arant Boult Cummings LLP

Do We Still Need Retainage?

There have been debates for years about the pros and cons of owners withholding retainage (usually 5% or 10%, depending on each state’s retainage laws or local “industry standard”) from prime contractors. Typically, the...more

Bass, Berry & Sims PLC

Significant 2019 Tennessee Construction Decisions

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This Construction Law Alert highlights some of the significant Tennessee state and federal decisions affecting the construction industry from the past year. Holdback Payments Are Not Retainage - Tennessee’s Prompt Pay...more

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