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Bill Summary Details

Retainage (Oppose – Preemption) 

SB 246 (Hooper) and HB 101 (Andrade) would allow municipalities the ability to retain only up to 5 percent across an entire construction project. Currently, municipalities can withhold up to 10 percent of retainage for the first half of a construction project and up to 5 percent on the last half. Retainage serves as a safeguard against possible overpayment to the general contractor when the estimated percentage of project completion, used for periodic payments, exceeds the actual percentage completed. Additionally, retainage helps to ensure that the project is 100 percent complete prior to funds being released to the contractor. (Branch)