Cheryl Shaw and Emily Breece wrote in the Daily Report about how “public school districts and other units of local government in Georgia now face new requirements for an important part of many construction contracts: retainage, or the amount the project owner can withhold from progress payments to ensure the job gets done.”
“The changes are the result of Georgia Senate Bill 438, which went into effect on July 1,” Cheryl and Emily wrote. “The new law eliminates some confusion as to when a local government must stop or may restart withholding retainage—two areas that had previously led to disputes.”
“It also reduces the maximum retainage amount but lengthens the allowable timeframe for an owner to withhold retainage,” they continued, “and broadens the types of incomplete items that are eligible for withholding payment after substantial completion.”
Subscribers can read the full article here: Changes to Georgia Government Construction Contracts May Reduce Confusion and Disputes
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