MN HF2912

Public contracting agencies must release retainage or final payment to prime contractors within 45 days of substantial completion of work.

After substantial completion, agencies may withhold no more than 150 percent of the value of incomplete or defective work, which must be paid within 45 days after completion.

Public contracting agencies may reduce or eliminate retainage if work is progressing satisfactorily, at the agency's discretion.

"Substantial completion" is defined by reference to Minnesota Statutes section 541.051, subdivision 1, paragraph (a).

The requirements apply to agreements entered into on or after August 1, 2018.