SB 438, Public Works Retainage

Municipal Impact
Position
Evaluating
GMA Contact
Bill Sponsor

Sen. Lindsey Tippins
District 37

This bill acts to modify the retention of contractual payments and creation of escrow accounts on contracts for installation, improvement, maintenance, or repair of water or sewer facilities, so as to change provisions relating to retainage of progress payments. Current law allows state and local government to keep 10% retainage until a project is 50% complete, and then 0% retainage thereafter. This law penalizes early construction providers who complete their work prior to the 50% completion milestone. SB 438 introduces a flat 5% retainage threshold for all providers for the life of the projects. 

Last Updated: 2/7/2022
Subject Area: Economic Development and Redevelopment | Finance and Money Management |
Resources: bill text
BILL STATUS
7/1/2022 - Effective Date 5/13/2022 - Act 871 5/13/2022 - Date Signed by Governor

Votes

3/28/2022 House Vote #789 Yea - 151 Nay - 0 Not Voting - 11 Excused - 18
2/15/2022 Senate Vote #520 Yea - 52 Nay - 0 Not Voting - 2 Excused - 2

Comment on this Bill

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