VA SB165

Allows contractors and subcontractors on construction projects to substitute a retainage bond for cash retainage withheld by owners during construction

Owners must release withheld retainage within five business days of receiving a valid retainage bond tender, or refrain from future withholding to the extent of the bond

Subcontractors may tender retainage bonds to general contractors, who must then submit the bond to the project owner on the subcontractor's behalf

Contractors and subcontractors retain all interest and income earned on retainage bonds they provide

The law will not take effect unless reenacted by the 2027 Virginia General Assembly session