Best Practices Construction Law

NOVEMBER 6, 2019

The Supreme Court of Vermont recently held that the conditions attached to a contractor’s payment of retainage to a subcontractor violated the state’s Prompt Pay Act. In the same letter as its refusal, the contractor said it would release the retainage payment “which was pending receipt of a Waiver of Lien.

Vermont 54

Vermont Lien Claims Negotiation 54

BD+C

SEPTEMBER 12, 2019

A new Illinois law sets the maximum retainage clients can withhold from contractor payments on private projects. The change went into effect on August 20, and is expected to help many general contractors and subcontractors receive bigger checks earlier in the project timeline.

Illinois 49

Illinois Contractors 49

Construction Dive

APRIL 21, 2016

In either case, the rationale is that the subcontractor’s portion of the retainage should be passed through to the sub once the owner is no longer retaining those funds to assure project completion. Featured…Subcontract Retainage Did Not Violate Prompt Pay StatuteBidder Had to Explain Lack of Subcontractor Listing

Subcontracting 48

Subcontracting Contractors Contract 48

Construction Dive

MARCH 5, 2015

By Bruce Jervis A recent report on a project owner’s ability to reach contract retainage without any formal determination of contractor default prompted considerable comment.

Lien 48

Lien Change Orders Claims Contract 48

Construction Dive

FEBRUARY 12, 2015

This retainage, which can accumulate to a substantial sum, provides the owner with more than just protection. Featured…Owner Reaches Retainage without Determination of DefaultDeviation from Statutory Lien Waiver Form Costly for Lender' The purpose is to protect the owner against incomplete or deficient work.

Lien 48

Lien California Contractors Contract 48

Lets Build

APRIL 6, 2022

Large upfront costs and long waiting periods between payments are a normal occurrence; retainage adds to this cash flow problem for contractors and project managers. Retainage is a long-standing practice in the industry that can make life challenging for construction workers. Retainage in construction defined.

Cash Flow 147

Cash Flow Lien Construction Negotiation 147

Construction Dive

AUGUST 28, 2019

Twenty states have restricted owners' withholding of contractor payments, a lawyer says, and the state's action could prompt others to make the change.

Illinois 92

Illinois Contractors 92

BD+C

APRIL 5, 2013

A reference manual published by the American Subcontractors Association, Retainage Law in the 50 States , is available for construction subcontractors to understand retainage laws across the U.S. Regulations Codes and Standards'

Regulation 40

Regulation Permits Security Construction 40

Levelset

JUNE 3, 2022

Washington’s public payment bond claim laws cover all public works projects commissioned by a state or local government entity that have a contract value of at least $150,000 — and it’s additionally possible to make a lien claim against unpaid retainage funds on certain public projects. Washington State retainage laws.

Washington 52

Washington Claims Lien Contract 52

Levelset

FEBRUARY 11, 2022

However, construction companies that deal with retainage will need to create an extra account to track it separately. If you don’t have retainage withheld from your payments, you may be able to use the standard accounts that QuickBooks provides. Out of the box, QuickBooks provides a standard Chart of Accounts that includes A/R.

Accounting 52

Accounting Management Contractors Lien 52

Construction Dive

SEPTEMBER 26, 2019

The city's Municipal Transportation Agency has already paid Tutor Perini for the change orders, minus the agreed-upon retainage.

Change Orders 82

Change Orders San Francisco Transportation 82

Construction Dive

JUNE 12, 2018

Contractors shouldn't hesitate to try to strike a better deal for things like change orders and retainage during contract negotiations.

Contract 100

Contract Change Orders Negotiation DOT 100

Best Practices Construction Law

JULY 10, 2022

The lender then would pay 90% of the approved payment application and hold back the remaining 10% as retainage. The contractor was supposed to be paid the final retainage upon completion, which it did not receive in accordance with the terms of the AIA Contract.

Contractors 62

Contractors Agreement Banking AIA 62

Levelset

JUNE 16, 2022

New Jersey retainage laws. Retainage — or retention — is an amount of a contract that is held back from a contractor or subcontractor during the course of the project. New Jersey’s retainage statutes only apply to certain public works projects. Deep dive: The Ultimate Guide to Retainage in the Construction Industry.

New Jersey 52

New Jersey Lien Claims Contract 52

Best Practices Construction Law

SEPTEMBER 25, 2020

The prime contractor argued that subcontractor’s claim should be limited to its contract balance of approximately $500k in retainage. On appeal, the contractor argued that the award should have been limited to the $500k in retainage. Ultimately, the trial court awarded the subcontractor more than $800k for its claims.

Compensation 97

Compensation Lien Claims North Carolina 97

Construction Business Owner

APRIL 1, 2013

ALEXANDRIA, VA. April 1, 2013) — The American Subcontractors Association unveiled a legislative work kit containing model state legislation to address the lack of payment assurances for construction subcontractors on projects financed by public-private partnerships.

Negotiation 120

Negotiation Agreement Finance Modeling 120

Constructlaw

APRIL 20, 2023

With this backdrop, the court looked at FE&C’s specific claims that Relyant violated Sections 103 and 104 of the Tennessee PPA by withholding 10% retainage from each invoice and by not placing that amount in a separate escrow account. The subcontract was silent as to whether retainage must be placed in an escrow account.

Tennessee 52

Tennessee Subcontracting Missouri Claims 52

Levelset

FEBRUARY 14, 2022

There are a lot of things that are different about construction accounting, but retainage may be one of the most unique. Not only does retainage make it harder for a construction business to manage cash flow — simply recording the transaction can be a feat. Why you can’t record retainage in Accounts Receivable.

Contractors 52

Contractors Accounting Cash Flow Lien 52

Viewpoint Construction Technology

DECEMBER 12, 2019

release offers improved vendor retainage release options and reporting. Viewpoint’s Vista 6.19

Viewpoint 33

Viewpoint 33

Levelset

JUNE 6, 2022

In an attempt to hold contractors accountable, many projects use retention holdbacks, also known as retainage. Retention, also called retainage , is money held back from each payment to ensure that a contractor or subcontractor completes a project. What is retention?

Accounting 98

Accounting ABC Banking Liability 98

Levelset

FEBRUARY 11, 2022

These accounts are used to record transactions like: Retainage receivable Retainage payable Underbilling Overbilling Depreciation and others. This free construction Chart of Accounts includes accounts for retainage, underbilling, and more, formatted for easy importing to QuickBooks. View in Google Sheets.

Accounting 52

Accounting Contractors Income Software 52

Construction Dive

JUNE 9, 2016

Featured …Retainage Was Not Authorized by ContractReference to Contractor Proposal Rendered Release Ambiguous The owner’s rep monitors compliance with the contract requirements, handles administrative aspects of the contract and determines the validity of contractor payment applications.

Contract 48

Contract Contractors Site Design 48

Contractor Bookkeeping

FEBRUARY 12, 2016

Second Important Principle In Construction Accounting: Tracking Income properly, Knowing how, when and where to put Customer Estimates, Customer Invoices, Customer Job Deposits and any Retainage Withheld, Vendor Refunds and Rebates. Good Construction Accounting Is All About the Details.

Income 48

Income Accounting Overhead Contractors 48

Construction Dive

NOVEMBER 27, 2013

Featured in this Week’s Construction Claims Advisor:Sub Not Responsible for Delay – Recovers Retainage, Extras and Attorney FeesExpert’s Referenced Document Admitted at TrialGovernment Allowed Tactical Conversion to Termination for Convenience'

Contract 56

Contract Legal Claims Documentation 56

Construction Dive

OCTOBER 21, 2012

Featured in this Week’s Construction Claims Advisor:Missing Certification Indicated Noncompliant BidEarly Payment of Retainage Did Not Discharge Bonding CompanyLien Upheld Despite Questions of Subcontractor Licensing Bidder responsibility can be established after bid opening and prior to contract award.

Bidding 48

Bidding Documentation Certification Claims 48

Fieldwire

SEPTEMBER 5, 2023

Together, they show the percentage of each item of work that a contractor has completed, and the amount they should be paid for it, minus any retainage that the owner or GC is withholding. A pay application form works closely with the schedule of values. Contractors don’t get paid for the work they complete.

Lien 98

Lien AIA Documentation Change Orders 98

Constructlaw

JULY 12, 2022

Under the Agreement, 360 was to apply to rezone the Site, to collaborate with DonRob on site and joint development plans, and to design and construct an access road, including the associated drainage and retainage, utilities, access points, and sidewalks.

Contract 52

Contract Liability Agreement Georgia 52

Construction Cost Estimating

JULY 1, 2013

Maxwell Systems ProContractorMX version 3.1 construction estimating tools free estimating software free construction estimating &accounting software construction management software'

Software 45

Software Software Management Lien 45

Best Practices Construction Law

NOVEMBER 26, 2012

Also, consider eliminating any retainage provisions, if possible, or including a phased-out retainage so that your entire gross profit is not left until the project is completed. First, pay attention to payment terms, including whether payment is based upon work in place or equal installments.

Cash Flow 48

Cash Flow Project Management Change Orders Agreement 48

Levelset

JULY 9, 2022

Retainage works just slightly differently, with the main difference impacting the prime contractor. Once the project has reached substantial completion, the public entity needs to pay out withheld retainage within 30 days after receiving an invoice for final payment. Georgia retainage laws. Learn more.

Georgia 52

Georgia Claims Lien Contract 52

NH Construction Law

AUGUST 21, 2022

The one thing that gives me pause here is that bonds incorporate the terms of the bonded contract by reference, and often those bonded contracts will – as is true of the AIA A201 form – require consent of the surety for release of retainage after substantial completion (see § 9.8.5) and for final payment (see § 9.10.2).

Liability 40

Liability Contract AIA Contractors 40

Levelset

MARCH 24, 2022

This is a guide on how to file Utah preconstruction liens, but you may have other questions about construction lien rights, prompt payment deadlines, retainage requirements, and more in Utah. More Utah construction payment resources. View all of our resources, free forms, and guides to help you get paid what you’ve earned in Utah.

Lien 52

Lien Utah Claims Security 52

NH Construction Law

JUNE 22, 2019

It also starts the commencement of the eight-year statute of repose under RSA 508:4-b. And most importantly, it renders the contractor’s breaches insufficiently material to justify terminating his contract.

Contract 40

Contract Compensation Materials Contractors 40

NH Construction Law

MAY 28, 2018

Before subcontracting any significant portion of a long term job to someone who isn’t known to be financially solvent, the wise general will ask for proof that the sub can carry the strain of weekly payroll through a monthly requisition procedure, with retainage.

Subcontracting 40

Subcontracting New Hampshire Lien Insurance 40

Levelset

JULY 7, 2022

Oregon retainage laws. Retainage (or retention) is an amount of money withheld from payment to a project’s contractor or subcontractor until the end of a given project (or until a time specified in the contract). Generally, retainage is used to ensure that a contractor finishes its work completely and correctly.

Oregon 52

Oregon Claims Contract Contractors 52

Best Practices Construction Law

AUGUST 29, 2012

Each state DOT has rules on these issues, whether you are talking about use of joint checks, renting equipment loaning employees, selling materials, advancing funds, or holding retainage. In a new post on Friday, I will review some of the differences among the states' laws.

Regulation 48

Regulation DOT Transportation Commercial 48

Job Order Contracting

FEBRUARY 20, 2018

6) ORGANIZATION NAME may hold retainage for completion of any punch list items in. If the performance period of a Job Order exceeds 30 days, partial payment is authorized, based on the percentage of completion minus a 10% retainage of total sum of JO. ORGANIZATION NAME will perform the Contract administration. Application for final.

Contract 100

Contract Organization Change Orders Overhead 100