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Can retainage be included in the amount of your lien or bond claim in Georgia?

If not, how do I get paid on retainage withheld in Georgia for public and private jobs? How do I know when the owner has paid out retainage? Sometimes the owner may have paid out retainage to the GC but our customer has not paid us for retainage held.

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Sep 17, 2019

Retainage amounts may be included in a Georgia mechanics lien claim and Georgia payment bond claims, where appropriate. This makes sense considering that retainage represents payment owed for work performed and that mechanics liens and bond claims seek to obtain just that - payments owed but not paid that are due for work that's been done. Of course, no one wants to rely on adversarial claims like liens and bond claims in order to be paid what they're owed. Sending things like invoice reminders, payment demand letters, and even notices of intent (to lien, or to make a bond claim) may be helpful to compel retainage payments before these claims become necessary. Regarding knowing when retainage is paid out - it's hard to know when a contractor or a customer has received retainage on both public and private Georgia projects. Georgia does not provide a mechanism for a subcontractor to request information on retainage and receive a required response. However, by building sound relationships on the job, it might be easier to obtain information on when retainage has been or is being released. Requesting that a contractor or your customer keeps you informed regarding retainage might be enough to actually stay informed if they're comfortable sharing that info. Plus, if those parties understand that a claim will be made against retainage amounts, if necessary, then they might be encouraged to ensure everything's being done by the book - or, they at least might be more transparent. For public jobs in Georgia, there's a little more guidance than private works. On Georgia public works projects, retainage must be released from the owner to the contractor within 30 days of substantial completion. Under Georgia's prompt payment laws, that contractor must then release payments to their subcontractor within 10 days, and that subcontractor is then required to release any retainage to their subs or vendors within 10 days, and so on down the chain. So, while there's no requirement that a contractor or sub inform their subcontractor or sub-subcontractor when they've received payment, they must still release payments quickly after they receive them, and it's not too tasking to build out an expected pay schedule based on the completion of the project. For private projects in Georgia, there's less guidance on when retainage will be released. Generally, retainage will be withheld according to the contract. But, regardless of what's in the contract, an owner or contractor can withhold retainage if there's any dispute over the work that's been done, the schedule, or really any work-related issue on the project. So, it's harder to nail down exactly when retentions can or even should make their way down the payment chain. But, as discussed above, retainage will generally be subject to payment claims like a mechanics lien, and leveraging those rights can certainly help speed up payment. For more information on Georgia's retainage rules: Georgia Retainage Guide and FAQs. For more on retainage, generally: The Ultimate Guide to Retainage in the Construction Industry.

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