Summary of HB10-1162

Sponsors: Soper/Bacon

The bill prohibits retaining more than 5% of the payments due to a contractor to ensure that work is satisfactorily completed (retainage) for the first 50% of a construction project. For the remaining 50% of the work, the bill prohibits retainage of more than 2.5%. More retainage may be withheld for work that is unsatisfactorily completed.
A building client is required to deposit retainage in an interest-bearing escrow account that the contractor may access with an arbitration or court order. The bill sets standards for the account. If the building client fails to deposit the money in an account, the building client
is required to pay the contractor 15% interest on the retainage.
The bill requires a contractor to forward payment to a subcontractor for work the subcontractor performed within 7 days. The building client is required to pay the contractor retainage within 30 days after substantial completion of the construction project. A violator is
required to pay interest plus a penalty of 15% interest. Contractors are authorized to give the building client a substitute security and have retainage paid. Standards are set for the security.

Status:

01/20/2010 Introduced In House - Assigned to Business Affairs and Labor
01/20/2010 Introduced In House - Assigned to Business Affairs and Labor + Appropriations
02/24/2010 House Committee on Business Affairs and Labor Witness Testimony and/or Committee Discussion Only
03/03/2010 House Committee on Business Affairs and Labor Refer Amended to Appropriations
04/09/2010 House Committee on Appropriations Lay Over Amended
04/16/2010 House Committee on Appropriations Refer Amended to House Committee of the Whole
04/20/2010 House Second Reading Lost with Amendments

Fiscal Notes

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