The Question Reader Gil Anko asked this question on a past post about retainage: If the contractor fails to request the release of the funds retained, is there a statute of limitations within which contractor must request release of the retainage??? The answer: yes. How Long Does It Run? How long is the statute of limitations… Continue Reading
Illinois bill (HB344) to amend the Contractor Prompt Payment Act to put caps on retainage under private construction contract and subcontracts is active and moving again.
The Illinois Senate is considering a bill to amend the Illinois Contractor Prompt Payment Act (the “Act”) affecting when and how (1) owners pay prime contractors and (2) prime contractors pay their subcontractors. If enacted, this bill (HB 0344) will: Limit retainage on private construction projects to a maximum of 5 percent of payments to… Continue Reading
In the last post we talked about what retainage is, why owners and contractors withhold it, and how much they customarily withhold. As promised, in this post we’ll talk about releasing and reducing retainage before work is completely finished. Early Release of Retainage Contracts often provide for an early payment – referred to in trade… Continue Reading
What’s Retainage? “Retainage” is law talk for money that an owner, or a contractor, withholds from an interim payment to pay at a later time. Construction contracts – and here I mean both prime contracts and subcontracts – usually provide for retainage. The owner often withholds retainage money from the prime contractor until the prime… Continue Reading