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
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
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
In the 2019 session, the Minnesota Legislature introduced a number of sweeping changes to statutes affecting individuals in the construction industry. On August 1, 2019, a number of those changes will go into effect. These...more
Connelly Constr. Corp. v. Travelers Cas. & Surety Co. of Am., 2018 U.S. Dist. LEXIS 123009 (E.D. Pa. July 24, 2018). The Commonwealth of Pennsylvania Department of General Services undertook a project for the construction...more
The Louisiana Fourth Circuit's recent decision in Woodrow Wilson Constr. LLC v. Orleans Parish School Board marks a potential victory for general contractors seeking final payment on public construction projects. However, it...more
Illinois is considering joining the growing ranks of states that restrict retainage withheld on private or public construction projects. Illinois Senate Bill 3052, invalidating contract clauses calling for retainage in...more
In This Issue: - Retainage limited to 5 percent in Massachusetts: Outlier or coming to your state? - Pennsylvania overhauls mechanic’s lien law with creation of state construction notices directory -...more