SCS/HB 662 - Private building contracts may allow owners to retain a portion of payment due to a contractor in order to ensure the proper performance of the contract. Owners may only withhold retainage when the owner pays a contractor within thirty days of receiving the contractor's invoice. Such retainage shall not exceed five percent of the payment due pursuant to the contract or agreement unless the contractor's performance is not in accordance with the contract, in which case the owner may retain additional sums in any amount. Contractors may tender substitute security to an owner, after which the contractor may receive cash payments of retainage already withheld or may avoid withholding of retainage. Subcontractors may likewise tender substitute security to the contractor and either recover or avoid withheld retainage.

This act is similar to SB 482 (2001).
VANESSA CALEB

SA 1 - THE DEFINITION OF "OWNER" SHALL INCLUDE PUBLIC ENTITIES.