We are a material supplier for a public project in the State of Virginia and need to know if we are subject to the retainage ruleof 5%?
1 reply
Apr 7, 2020
Virginia caps retainage at a maximum of 5% for public projects. However, the state doesn't mandate that retainage be withheld. So, it's ultimately up to you and your customer to negotiate and agree upon whether retainage will be withheld and to what extent (up to 5%). And, if your contract doesn't include any retainage provisions, then retainage generally shouldn't be withheld from you.
For more information on Virginia's retainage rules: Virginia Retainage Guide and FAQs. For more on retainage, generally: The Ultimate Guide to Retainage in the Construction Industry.