MS SB2658

Creates Section 87-7-9 of Mississippi Code to establish a maximum 5% retainage on private construction contracts for building, repair, or demolition of non-residential structures located in Mississippi.

Applies to all contracts providing for progress payments based on percentage of completion, with the 5% retainage limit mandatory and non-waivable by agreement.

Exempts residential property contracts from the retainage limitations, as defined in Section 85-7-401.

Applies to all contracts made, renewed, or renegotiated on or after July 1, 2018.

Defines contract parties as owners (property owners or lessees), contractors (erection or construction workers), and establishes that retainage applies to both primary contractors and subcontractors.