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
| Jun 1, 2012
New BD+C University Course on Insulated Metal Panels available
By completing this course, you earn 1.0 HSW/SD AIA Learning Units.
| May 31, 2012
Proposed change in Michigan’s building code would hurt innovation, say critics
Legislation pending before the Michigan Senate would change the law that calls for building codes to be updated every three years to require an update only every six years.
| May 31, 2012
Natural gas industry opposes federal carbon-neutral construction rule
The natural gas industry and some allies are working to block a federal green building rule that was expected to be a national model for carbon-neutral construction.
| May 31, 2012
Lawsuits push the legal boundaries of green building definition
This article explores some legal issues stemming from lawsuits in which plaintiffs have charged developers with not delivering on a promised level of sustainability.
| May 31, 2012
ANSI approves Green Building Initiative’s design standard
The Green Building Initiative (GBI), a Portland, Ore. nonprofit organization, has had its new consensus-based standard for the design, construction, and operations of environmentally friendly buildings approved by the American National Standards Institute (ANSI).
| May 31, 2012
USGBC testing Minnesota buildings to see if they are living up to LEED standards
The Minnesota chapter of the U.S. Green Building Council (USGBC) has teamed up with EnergyPrint, a St. Paul, Minn. energy consulting firm, to study the energy and water use of more than 150 buildings in the state that have LEED certification.
| May 29, 2012
Reconstruction Awards Entry Information
Download a PDF of the Entry Information at the bottom of this page.
| May 25, 2012
Major retail chains welcome LEED Volume option
Large national chains such as Starbucks, Marriott, Verizon, and Kohl’s are welcoming the LEED Volume Program that enables them to batch certify similar projects.