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Can a General Contractor hold my retention while they are in court with the owner of the project?

UtahRetainage
Anonymous Subcontractor

I am a small subcontractor that does window coverings. Rimrock construction was the general contractor for USU Valley View project in Logan, Utah. I was told that I cannot get payment for retention until the law suit is settled with DFCM, which can still be another year. I have received all my pay request, not on a timely manner, at the first part of 2019. I contacted the GC the other day to see how much longer before I can receive my retention, he told me probably another year. I also contacted DFCM to make sure that they were still in court, and DFCM confirmed that they were. Please let me know what I can do to collect my money now instead of waiting for a year. Thank you

1 reply

Levelset Admin at Levelset
| 1,000 reviews
Apr 7, 2020
Before deciding how to proceed, it's important to look to the contract for guidance.  Utah's retainage statute does generally call for subcontractors' retainage to be released after their customer is paid retainage. But, it's possible that claims could be available if the terms of the contract differ from what's prescribed by statute. What's more, it may even be possible that a claim could still be available even if the statute allows for the delay of retainage. Admittedly, I don't have experience with this sort of thing in Utah, so I won't be able to provide specific guidance on how to navigate this issue. But, considering the potential delay in retainage, and considering it's being held up due to legal disputes, it'd be wise to consult with a Utah construction attorney. They'll be able to review the situation and relevant circumstances and advise on how to proceed.
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