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Construction Law Today

Category Archives: Retainage

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Retainage Limits Under Proposed Amendments to the Illinois Contractor Prompt Payment Act

Posted in Bills and Proposed Legislation, Illinois, Retainage, States

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

Retainage Tips For Construction Contracts Part 2 – Early Release, Stopping, and Suspension of Retainage

Posted in Retainage

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

Retainage Tips For Construction Contracts Part 1 – What’s Retainage, Why Have Retainage, How Much Retainage?

Posted in Retainage

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