FL S0246

Reduces maximum retainage withholding from progress payments for public construction contracts from 10 percent to 5 percent for both local governmental entities and public entities.

Eliminates the tiered retainage system that previously allowed 10 percent withholding until 50-percent completion, then reduced to 5 percent, replacing it with a uniform 5 percent maximum rate throughout construction.

Removes provisions allowing contractors to withhold higher retainage rates from subcontractors after 50-percent completion and eliminates the ability to request release of half the retained funds mid-project.

Applies changes to contracts for construction services exceeding $200,000; contracts of $200,000 or less are exempt from these retainage requirements.

Takes effect October 1, 2020, and does not apply to contracts entered into, pending approval, or advertised for bid before that date, or to contracts executed under chapter 337, Florida Statutes.