MS SB2762

Establishes a maximum retainage of 5% of estimated work value on construction contracts in Mississippi, with interest accruing at 1% per month on any amounts withheld in excess of this limit.

Requires owners to release and pay retainage to contractors within 60 days after final completion of work and all necessary certificates of occupancy are issued.

Applies retainage restrictions to payments between owners and contractors, contractors and subcontractors, and subcontractors and sub-subcontractors.

Exempts residential homebuilding, residential properties with 16 or fewer units, contracts under $10,000, and state and local government contracts from these retainage provisions.

Allows contractors, subcontractors, or suppliers to file civil actions to recover improperly withheld amounts plus accrued interest and attorneys' fees, and amends existing public contract law to define retainage consistently.