MO SB862

Eliminates retainage withholding on public works projects when the public owner has obtained a performance bond under section 107.170.

Allows public owners to withhold retainage up to 5 percent on projects under $25,000 where no bond is required.

Requires public owners and contractors to make payments within 30 days and imposes 1.5 percent monthly interest on late payments.

Requires contractors to pay subcontractors and material suppliers within 15 days of receiving payment or face 1.5 percent monthly interest charges.

Permits withholding of payments only for specified reasons including unsatisfactory progress, defective work, disputed items, or third-party claims, with disputes resolved according to contract terms.