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Billing for retainage on a public, bonded project

We worked as a subcontractor for a school project. We have been paid in full for all of the invoices, but we have not been allowed to bill for retainage because the contract is not completed yet. What rights, if any, do we have to file a claim against the bond since the retainage is not technically due yet?

1 reply

Jul 9, 2020

Assuming this school project was funded by a state entity, (that is to say not a federal project), to recover on a payment bond for a claim for retainage, you will need to send written notice tot eh prime contractor AND SURETY on or before the 90th day after the date of final completion of YOUR contract with the general contractor. For reference, you can look up Tex. Gov't. Code 2253.046(a). The notice must consist of a statement of the amount of the contract, any amount paid, and the outstanding balance. For reference, you can look up Tex. Gov't. Code 2253.046(c). This deadline is critical to getting paid, so do not miss it. It does not matter when the retainage payment is technically due per the contract. These notice requirements typically exist outside of the requirements of the contract and must be met, unless they are intentionally waived, which is rare. I recommend using some type of service of legal professional to assist you in handling this to make sure all of the intricate requirements are met. Great builders and construction companies struggle with these things all the time. Good luck! Ben House 281-762-1377 ben@houseperron.com

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