Retainage (Oppose – Preemption) 

Retainage (Oppose – Preemption) 

SB 246 (Hooper) and HB 101 (Andrade) reduce the amount a public entity may withhold from a progress payment to a contractor as retainage. Currently, local governments will withhold a certain percentage of compensation known as “retainage” from the general contractor to ensure the project is completed satisfactorily. In addition, retainage serves as a safeguard against possible overpayment to the general contractor when the estimated percentage of project completion, used for periodic payments, exceeds the actual percentage completed. (Branch)