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Difference in Public vs. Private

5 months ago

So how does the law relate to % of required retainage? Is it 10 or 5% floor?

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Project Role: Other
Project Type: Commercial
Legal Associate Levelset
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Florida retainage laws only regulate the amount of retainage withheld on public construction projects.

Florida retainage on public projects

Under these statutes, the maximum amount of retainage allowed to be withheld is 10% of the total contract price. However, once the project has reached 50% completion, the percentage may be reduced to 5% as long as the contractor is performing satisfactorily. Additionally, at the half-way mark, a contractor does have the right to request for half of the retainage withheld. Final retainage is required to be disbursed from the contracting entity within 30 or 60 days, depending on the prime contract price for the project.

Florida retainage on private projects

As for private construction projects, the amount of retainage withheld will be dictated by the terms of the contract. The timing for when retainage needs to be released by the property owner is dictated by the Florida prompt payment laws. Retainage on private projects needs to be released by the property owner within 14 days of either (1) the issuance of a certificate of substantial completion, (2) a certificate of occupancy, or (3) when the property owner takes possession of the property.

For a full breakdown see: Florida Retainage Laws: A Guide to Private & Public Projects

  • Side note: There is a bill currently recently passed by the FL Senate that would reduce the amount of retainage on public projects from 10% to 5%, the bill is awaiting approval by the governor. For more information on that see Florida Retainage Bill Reaches Governor’s Office.
Disclaimer: Disclaimer: NOTE. The information presented here is for informational purposes only. It is not legal advice and should not be construed nor relied upon as such. Furthermore, this posting does not create an attorney-client relationship. If you need legal advice, seek the counsel of a licensed, local attorney.
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