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GA SB438
Bill
Status
Passed
5/13/2022
Primary Sponsor
Lindsey Tippins
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AI Summary
- Maximum retainage on public works construction contracts reduced from 10% to 5% of each progress payment, effective for contracts entered into on or after July 1, 2022
- Eliminates the prior provision that allowed owners to stop withholding retainage after 50% of contract value was completed and work was satisfactory, as well as the ability to resume retention if work became unsatisfactory or fell behind schedule
- Reduces the maximum retention on water or sewer facility contracts from 10% to 5% of gross value of completed work, with similar removal of the 50% completion threshold provisions
- Requires owners to pay retainage to contractors within 30 days of invoice at substantial completion; for incomplete items, up to 200% of each item's value may be withheld until completed
- Contractors must pass through retainage payments to subcontractors within 10 days of receipt, reducing each subcontractor's retainage by the same percentage amount as the contractor's retainage was reduced by the owner
- Exempts Department of Transportation road/highway contracts and contracts valued at or below $150,000 or 45 days in duration
Legislative Description
Contracts; certain provisions relating to retainage of progress payments; change
Last Action
Effective Date 2022-07-01
5/13/2022
Committee Referrals
Judiciary2/17/2022
Regulated Industries and Utilities2/3/2022
Full Bill Text
No bill text available