Contractors routinely complain about retainage being withheld for extended periods of time, well beyond the project’s substantial completion date. This problem seems to be getting worse every year. Contractors on public work in Ohio should understand that, regardless of what the contract says, public owners are to pay escrowed retainage funds, together with accumulated interest, […]
retainage Archive
Time for Change: Why the practice of retainage is in need of significant reform.
Why Does Retainage Exist? As subcontractors know all too well, retainage is an owner’s or higher-tier contractor’s practice of holding a predetermined percentage from each progress payment to the next-lower tier of subcontractors, and releasing the retained amounts only when a milestone such as “substantial completion” is reached. This practice has a dramatic effect on […]
How to Build a Large School Early + Under Budget
School administrators are often frustrated by cost overruns and delays on much needed capital improvement projects in recent years. Yet many of those same administrators and their counsel continue to employ the same techniques and methodologies that have failed in the past. Our firm had the opportunity to serve as counsel on probably the largest […]
The Art of Negotiating Retainage
Eric Travers explains the art of negotiating retainage. While some may believe retainage is a necessary evil in the construction industry, Eric explains why retainage is not always necessary, and in some cases can be avoided, with some forethought and persistence. For far too long the construction industry has tolerated withholding retainage far in excess of current […]