Home>Levelset Community>Legal Help>Can a flooring store hold $3500 of my money in an escrow, where a job I do only pays $2000 to $5500?

Can a flooring store hold $3500 of my money in an escrow, where a job I do only pays $2000 to $5500?

FloridaConstruction Contract Retainage

I’m a subcontractor that installs tile for a local tile store in n Panama City Florida. The biggest jobs I do at one time pays me between 2000 to 5000$. I’ve been with this store for about 8 years. They held an escrow of $1500. But they just raised it and now are holding $3500. Is this legal for them to do?

1 reply

Sep 23, 2019

Florida does not regulate the amount of retainage which can be withheld on private construction projects in the state. So, for projects not owned by a public entity, there isn't really a cap on what retainage can be withheld between construction businesses. However, when there are no retainage laws to guide how retention should be managed in the state, note that retainage generally can't be withheld unless it was agreed to in the contract for work. So, if the contract didn't allow for retainage, then withholding retainage might actually be counter to the contract and may even result in a breach of that contract.

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