S.F. No. 3057 Summary

• Requires any retainage reserved from building and construction contract payments to be held in an interest-bearing escrow or trust account with a Minnesota bank or trust company.

• Mandates release and payment of all reserved retainage and accrued interest within 30 days after substantial completion of contract work.

• Limits retainage amounts to a maximum of 5 percent of each progress payment, with owners able to reduce or eliminate retainage if work is progressing satisfactorily.

• Defines "substantial completion" as either completion of all work except items costing less than 1 percent of adjusted total contract price, or substantially all work completed and opened for use except minor incomplete items that do not materially impair usefulness.

• Excludes contracts for professional services as defined in Minnesota Statutes sections 326.02 to 326.15 from these requirements.