Hello , in the 5th month of a project and now the company paying me wants to enact the 10 percent hold down at the end .
All payments have been made in full up to this point , are they allowed to do that ?
3 replies
Aug 30, 2021
Retainage is something that the parties have to agree on as part of the contract. If it is not part of your contract, whether written or oral, then the other party has no right to impose it.
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Aug 30, 2021
Sorry , let me clarify my question
Contract has in it that only 90 percent of invoices to be paid till the end .
Problem is they have paid invoices in full up to date of last one .
Now they admit their mistake and propose taking retro money back .
Is that legal ?
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Aug 30, 2021
If it was a mistake, I think that they can. If they intended to ignore that part of the contract then that would be either a waiver of that part or a modification of the contract by conduct. For the sake of practicality I suggest that you ask them to agree to a 5% retainage including the "clawback" part because it is too much at one time.