A new Illinois law sets the maximum retainage clients can withhold from contractor payments on private projects.
The change went into effect on August 20, and is expected to help many general contractors and subcontractors receive bigger checks earlier in the project timeline.
The new rule forbids customers from withholding more than 10% retainage from contractor payments, and orders retainage to be reduced to 5% after a contractor has completed half of the work.
The new law applies to all construction contracts. Twenty states have enacted legislation that caps private contract retainage at 10% or less. One state, New Mexico, prohibits any retainage from being withheld from a construction contract.
The legislation can be considered a codification of what already is standard industry practice. But, it should provide some relief because general contractors and subcontractors will be able to pay bills sooner with the additional 5%.
Related Stories
| Sep 26, 2012
Investment in greener data centers to reach $45 billion by 2016
Investment in data centers built to green standards will increase from the $17.1 billion predicted for this year to $45 billion by 2016, according to Pike Research.
| Sep 26, 2012
OSHA fines on fall-protection violations challenged by New York contractor
A New York masonry contractor is contesting an OccupationalSafety and Health Administration $136,290 fine for violations of fall-protection standards.a
| Sep 26, 2012
Construction workplace deaths decline nearly 7% in 2011
There were 721 construction-workplace deaths in 2011, according to the Bureau of Labor Statistics, down 6.8% from 2010.
| Sep 26, 2012
Contractors save $9 billion due to revised California emissions rule
The California Air Resources Board made changes to a rule limiting off-road diesel emissions that could result in contractors saving about $9 billion.
| Sep 20, 2012
Smithtown, N.Y. considers bigger fines for building code violations
After a Suffolk County grand jury recommended stiffer fines for illegal demolitions, Smithtown, NY officials are weighing tougher penalties for developers who violate the town building code.
| Sep 20, 2012
AGC awarded federal grant to provide fall-protection safety program
The Associated General Contractors of America will continue to provide fall protection safety training next year after being awarded a federal safety grant.
| Sep 20, 2012
East Lansing officials accused of ignoring unauthorized project that led to partial building collapse
The unauthorized construction of a fifth-floor penthouse on a downtown East Lansing, Mich. mixed-use development led to a partial building collapse earlier this year.
| Sep 20, 2012
Reflective roofs could reduce rainfall in Arizona
Green standards may have to take into account the impact of reflective roofs on rainfall in the desert Southwest.
| Sep 20, 2012
Earth Advantage Institute offers green certification for small commercial buildings
Earth Advantage Institute announced a new green building certification aimed at new or substantially remodeled small commercial buildings built to green standards.
| Sep 14, 2012
To create more pedestrian-friendly neighborhoods, Chicago unveils safety plan
As more urban mixed-use and residential developments aim to encourage residents to walk and use mass transit, cities are addressing pedestrian safety.