For a long time, retainage was simply something government contractors accepted as the cost of doing business. The money got withheld by statute, it sat, and eventually it came back. But the legal landscape has been shifting, and much of that shift has been driven by advocates working to give contractors more control over their own capital, even on publicly funded work.
The progress is real and concrete. Laws have been changed in states like Kansas and Florida to specifically allow retainage substitutions on qualifying work. New York City has agreed to a direct rollover of retainage, and the substitution process in New York has been streamlined. In many jurisdictions, contractors can now even choose their own escrow agent. Each of these wins expands what is possible for the public sector contractor who knows how to take advantage of it.
Double Diamond has been directly involved in driving many of these changes at the state and municipal level. We stay at the leading edge of public retainage law precisely so our clients can benefit from it. If you want to know what is possible in the jurisdictions where you bid, call us at 877 420 2852, or click here to learn more.
