Bill > S1006

This bill amends Section 29F of Chapter 149 of the General Laws to establish clearer rules for retainage, which is a portion of payment withheld in construction contracts to ensure the work is completed. Specifically, it defines a "contract for construction" as a contract for projects valued at $3,000,000 or more, with certain exclusions like projects with 1-4 dwelling units or those receiving state or federal financial assistance, and it limits the amount of retainage that can be withheld to no more than 5% of the contract price, declaring any provision exceeding this limit void. The bill also includes a provision that this new retainage limit will not apply to construction contracts where the owner's agreement was made before the bill's effective date.