Washington DC Retainage Overview
Retainage serves two general purposes: (1) To provide an incentive to the contractor or subcontractor to complete the project; and (2) To give the owner some protection against problems like liens, contractual defaults, delays, and more. In most states, laws exist to regulate how the parties use the retainage concept, mostly protecting some parties against abuse of the tool from others. The following are resources, legal information, and frequently asked questions about Washington DC’s retainage requirements. The Washington DC retainage statutes are reproduced below on this page.
Washington DC Retainage for Private Projects FAQs
Washington DC Retainage FAQs
Washington DC does not provide a retainage statute for private projects.
Washington DC Retainage for Public Projects FAQ
Washington DC RETAINAGE FAQs
Retainage rate is set at 10%. Once project is 50% complete, the Mayor may reduce or eliminate the retainage percentage.
When the work is substantially complete, the Mayor, if he thinks the amount retained is in excess of the amount adequate for protection, may release to the contractor all or a portion of the excess amount.
This is not specified for public projects in the Washington DC retainage statute.
Any contested case shall be afforded a hearing by the Mayor or the public agency involved.
The Mayor or the agency must give all parties involved in contested case reasonable notice of the afforded hearing.
Washington DC Retainage Statutes
Getting informed about prompt payment laws is important. An examination of Washington DC’s retainage laws, the rules and regulations related to the amount and timing of allowable retained payments, is important to know your rights and responsibilities as a party on a construction project. Washington DC’s specific laws can be found in: D.C. CODE § 2-203.01, and are reproduced below.
Retainage Statute on Private Projects
Retainage Statute on Public Projects
Washington DC does not provide a specific retainage statute for private projects.