Contractual Retainage Often times, general contractors pass the burden of statutory retainage downstream by virtue of a contractual retainage provision in their subcontract agreements
Bryan Thomas of Bradley Published December 2021 Legislation about retainage has become common place as many states have adopted different limitations, requirements, and schemes...The retainage at issue in Snake Steel was $18,270.58
McLaughlin and Raziye “Raz” Andican of Smith Currie Most contracts address the manner in which retainage will be withheld, reduced, and released
Wolf of Smith, Currie and Hancock LLP Published September 21, 2020 On September 18, 2020, Florida’s Governor signed House Bill 101 amending most of the statutes setting the allowable retainage for public construction projects in Florida. The amendments limit retainage to a maximum amount of five percent
On July 2, 2019, the United States Bankruptcy Court for the Southern District of Mississippi granted a motion for summary judgment that delivered a big win for sureties (and a blow to banking institutions) when it determined that a surety’s right to retainage is superior to a creditor’s security interest, even when the creditor’s security interest was perfected first
In a separate but equally as beneficial move, the Florida Legislature has amended Florida Statute § 255.078, to reduce the maximum allowable retainage from 10 percent of the costs to five percent throughout the term of the contract, a move that will most certainly benefit contractors and subcontractors alike. Under current law, project owners are permitted to withhold from payment to contractors up to 10 percent per monthly payment until such time as the project has reached 50 percent completion, at which time the retainage may be reduced from 10 percent to five percent. Correspondingly, after 50 percent completion of the project, contractors may elect to withhold retainage from payments to its subcontractors at a rate higher than five percent. The Florida Legislature’s unanimous move to amend the allowable retainage on public construction projects will most certainly provide welcome relief for contractors and vendors
The Lender would pay the Contractor 90 percent of the approved invoices and retain 10 percent (“Retainage”). The Retainage was to be paid upon completion of the hotel renovations
However, the trial court disagreed with Wyncrest’s argument that BIL-JIM’s claim for retainage—which was submitted at the end of its work at the project—was time barred
Any non-escrowed withheld retainage is gone. Always, always, know that there is a reason a “LLC” is called a “ limited liability ” company
The prime contractor argued that subcontractor’s claim should be limited to its contract balance of approximately $500k in retainage. Ultimately, the trial court awarded the subcontractor more than $800k for its claims. On appeal, the contractor argued that the award should have been limited to the $500k in retainage. By executing lien waivers and releases with each periodic payment, the contractor argued, the subcontractor had waived all of its claims other than retainage