Susan White | Frantz Ward States have been slowly clawing back at a higher-tier’s ability to withhold payments owed to its lower-tier subcontractors, aiming to protect subcontractors from undue financial hardship and ensure that payment disputes are handled more equitably. A standard withholding clause looks something like this: The subcontractor agrees that contractor shall have… Continue reading Offset, Setoff, and State Trends in Withholding Clauses
Tag: Withholding Clause
“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention
Erinn Contreras and Joy O. Siu | Construction & Infrastructure Law Blog | March 7, 2018 It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This… Continue reading “Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention