It is important to note that retainage rules vary significantly by state. The percentage withheld, the process, the ability to substitute all depend heavily on the state you are bidding in. Luckily for the contractors, the landscape has been shifting in their favor. Knowing which states are the friendliest can shape not just how you handle retainage, but also how you choose to pursue different jobs.
States like Kansas and Florida have recently changed their laws to specifically allow retainage substitution on qualifying public work. New York City agreed to a direct rollover of retainage, and the substitution process has been streamlined. In a growing number of states, contractors can now even choose their own escrow agent. Each of these developments expands what is possible for the public sector general contractor who knows how to take advantage of it, and the list keeps growing.
Double Diamond has been directly involved in driving many of these changes at the state and municipal level, and we stay at the leading edge of public retainage laws 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.
