Retainage

wawrecker · #1 (**permalink**) 08-22-2006, 02:22 PM

We completed a public project in may that took about 7 days to complete. While reviewing our recievables it came to my attention that they paid 60% of the invoice amount even though the job was 100% at the time of billing. I inquired to the customer as to the reason for the short pay and there response was I needed to supply the dump tickets for the waste. Not a big deal and I asked if there is anything else and all he said was read the spec. Well there is alot of crap in a spec that doesnt even pertain to the specific job, let alone determining if its sub or general required. The question really is, can they the general withhold greater than the public law of 5% retention due to not having submitted the waste tickets on a job that is physically 100% complete? Thanks

DemoDarlin · #2 (**permalink**) 08-22-2006, 04:50 PM

Wawrecker, I have seen contracts for retainage up to 15% before. I have also seen, where the GC can withhold up to a specific %, and thier C withhold from thier SC, until it cant stretch no more.

We will be starting a T & M job next month, we were very specific to our needs on our contract, and NO retainage, however, they did cut some of my equipment rates and cost plus 5%.

wawrecker · #3 (**permalink**) 08-22-2006, 05:56 PM

Here in Wa the state law is 5% on public jobs. Although the school districts have there weasel words of 3% "final completion".

**James** · #4 (**permalink**) 08-23-2006, 08:24 AM

Quote:

Originally Posted by wawrecker

Here in Wa the state law is 5% on public jobs. Although the school districts have there weasel words of 3% "final completion".

Reminds me of a job we did and the school wasn’t finished for more than 2 ½ years after our work was completed and yep they held retention till final completion. They made money there, collecting interest for that long.

I have never heard of contracts holding that much, 40%. I have seen new contracts with school districts and governments that now require all dump tickets be turned in so they can verify the all materials legally disposed of.

Are they really withholding the whole 40% and when they get the tickets they will release 35% of the remaining balance?

neyc · #5 (**permalink**) 09-16-2006, 05:15 PM

wawrecker-How did you do?

**James** · #6 (**permalink**) 09-20-2006, 02:07 AM

You have problems also neyc?