News & Analysis as of

Construction Project Construction Contracts Retainage

Cohen Seglias Pallas Greenhall & Furman PC

Don’t Get Caught Off Guard: Are Your Contracts and Construction Practices New York Compliant?

Recent updates to New York’s already complex construction laws require owners, developers, general contractors and subcontractors to revisit their construction contracts to ensure compliance with current New York law and...more

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

Holland & Knight LLP

New York Could Further Limit Retainage on Public and Private Construction Projects

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Proposed bills in the New York State Assembly and Senate would prohibit the retention of any amount of payment due and owing for materials delivered and accepted for public and private construction projects. The identical...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

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

Robinson+Cole Construction Law Zone

NY Prompt Pay Act for Private Construction Caps Retainage at Five Percent

New York’s Prompt Pay Act, which sets the standards that govern private commercial construction contracts exceeding $150,000, was amended effective November 17, 2023. The Amendment known as Senate Bill 3539 provides two...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

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

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

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

Porter Hedges LLP

Statutory v. Contractual Retainage On Texas Private Projects And The Contractual Retainage Notice

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Statutory Retainage- Texas law obligates construction owners to withhold 10% of the value of the work during the course of a project and for 30 days after final completion. This is generally known as statutory retainage....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

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? Unfair retainage

Dear YouDig?, We are finishing up a contract to start a piece of a big project. The owner is pushing for a 10 percent retainer of all of our payments. It does not seem fair as most of our costs are front loaded and most of...more

Buchalter

Payment of Retainage with “conditions attached” Deemed Non-Payment

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Given the amount of leftover Halloween candy in our house, you bet that I can make some deals with my kiddos: “If you do this, I will give you some candy” … or … “If you don’t stop doing this … I won’t give you any candy.”...more

Amundsen Davis LLC

New Illinois Law Impacts Retainage For Contractors

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The Illinois legislature recently passed a law modifying the Contractor Prompt Payment Act, impacting retainage on all private projects (except residential projects involving twelve units or less). The law sets the ceiling...more

Seyfarth Shaw LLP

Illinois Expands Protections Under the Contractor Prompt Payment Act by Imposing New Restrictions on Retainage

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The Illinois Contractor Prompt Payment Act, 815 ILCS 603/1, et seq. (the “Act”) was first enacted in 2007 and designed to safeguard contractors and subcontractors on private projects by providing a mechanism to expedite...more

Moritt Hock & Hamroff LLP

Bankruptcy Court Determines That The Right Of A Surety To Recover Retainage In A Construction Contract Due To Equitable...

On July 2, 2019, the United States Bankruptcy Court for the Southern District of Mississippi sent a clear message to secured lenders that their security interests on a contractor's account receivables, even if perfected, will...more

Robinson & Cole LLP

The Massachusetts Retainage Act: A Breakdown

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A new law is now in effect for contracts executed after November 6, 2014, that not only affects the amount of retainage that a construction stakeholder may withhold but also mandates processes for project completion. In...more

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