Are material suppliers subject to the 5% retainage rules for the State of Virginia?

3 months ago

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%?

Additional info about this contractor
Project Role: Material Supplier
Project Type: State/County
Senior Legal Associate Levelset
399 reviews

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.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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