FL S0246

Reduces the maximum retainage that local governments and public entities may withhold from contractor progress payments from 10% to 5% until 50% project completion

Lowers the retainage rate after 50% completion from 5% to 2.5% for subsequent progress payments to contractors

Allows contractors to withhold more than 2.5% retainage from subcontractors after 50% completion based on documented performance concerns, with written notification required

Permits small municipalities (population 25,000 or fewer) and small counties (population 100,000 or fewer) to retain up to 5% until final project completion

Exempts contracts entered into, pending approval, or advertised for bid on or before July 1, 2019, as well as contracts executed under Chapter 337 (Department of Transportation)