Governor Signs Bill Regulating Retainage On Private Construction Projects

Deborah Griffin is Senior Counsel and Jeff Bernarducci is a Partner in our Boston office.

The New Retainage Law Bolsters the Mass. Construction Industry, Promotes Development and Improves Contractors' Cash Flows

HIGHLIGHTS:

• The new Massachusetts Retainage Law, which is similar to the Prompt Pay Law of 2010, will apply to any contract arising from a private construction project where the prime contract value is $3 million or more and for which a lien may be established.
• Retainage shall be limited to 5 percent of each progress payment and new timing requirements apply to retainage release.
• The new Retainage Law presents both opportunities and challenges for all parties in the industry. During the months before the effective date of Nov. 6, 2014, the industry will have the opportunity to digest the impact of the law; revise their standard contract forms to comply; and adopt new administrative policies, procedures and forms to be used in carrying out