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This entry was published on 2014-09-22
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General Business (GBS) CHAPTER 20, ARTICLE 35-E
§ 756-c. Retention. By mutual agreement of the relevant parties an
owner may retain a reasonable amount of the contract sum as retainage. A
contractor or subcontractor may also retain a reasonable amount for
retainage so long as the amount does not exceed the actual percentage
retained by the owner. Retainage shall be released by the owner to the
contractor no later than thirty days after the final approval of the
work under a construction contract. In the event that an owner fails to
release retainage as required by this article, or the contractor or
subcontractor fails to release a proportionate amount of retainage to
the relevant parties after receipt of retainage from the owner, the
owner, contractor, or subcontractor, as the case may be, shall be
subject to the payment of interest at the rate of one percent per month
on the date retention was due and owing.