Amanda Manke, David Wilhelmsen and Craig Williams | Snell & Wilmer Retainage is a practice, standard in the construction industry, of withholding predetermined portions of payments due to the contractor until the project is complete. Developers (including project owners and their lenders) prefer requiring retainage for three primary reasons. First, retainage encourages their contractors to… Continue reading Retainage in the Southwest: A Look Into Arizona and New Mexico Retainage Laws
Tag: Retainage
Retainage: What Contractors Need to Know and Helpful Strategies
Gerard J. Onorata | ConsensusDocs Introduction Most, if not all, construction contracts contain a provision for “retainage.” The origin and concept of retainage dates back to the railroad boom that embraced Great Britain in the 1840s. In its simplest terms, retainage is a mechanism by which an owner or general contractor withholds disbursement of funds… Continue reading Retainage: What Contractors Need to Know and Helpful Strategies
Oregon Construction Owners and Lenders Are Affected by New Retainage Law
D. Gary Christensen and Jonathon Goodling | Miller Nash If you develop or build on real property in Oregon, your progress payments to contractors on future projects will be affected by a new law, effective on March 7, 2024. If you are a construction lender, your borrower may request that your periodic loan advances to… Continue reading Oregon Construction Owners and Lenders Are Affected by New Retainage Law
An Update and Refresher on Retainage
Mason Rollins | Bradley Arant Boult Cummings Depending on the state, retainage often provides an owner a security interest in unpaid funds to help cover completion costs or other damages that may later occur by withholding a certain portion (typically 5-10%) of contract funds from downstream contractors. Retainage also incentivizes the downstream contractors to timely… Continue reading An Update and Refresher on Retainage
Prime Contractor Beware, No. 3: Tis The Season, but is your Retainage Safe Under the Tree?
David K. Taylor | BuildSmart Here’s the Scenario: Try explaining the concept of “retainage” to a businessperson unfamiliar with the construction industry at your next holiday party. Here’s the typical response as she spits out her eggnog: “Wait a minute: are you telling me that when work and materials timely supplied on a private commercial project… Continue reading Prime Contractor Beware, No. 3: Tis The Season, but is your Retainage Safe Under the Tree?