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How do I show retainage of 10% on labor only.

Anonymous Subcontractor

I have a contract that specifies that 10% retainage will only apply to labor and not materials. I am creating my Notice of Specially Fabricated Materials, Notice of Contractual Retainage, & Request for Information and cannot specify this. I need advise on how to proceed.

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,003 reviews

Sep 24, 2019

Section 53-057 of the Texas Property Code creates the requirement for a Notice of Contractual Retainage. 53-057(c) states that the notice "must generally state the existence of a requirement for retainage." However, that section doesn't require that every detail of the retainage agreement be set out in the notice. So, something more basic than a thorough breakdown might be appropriate and effective. Generally, as long as the notice notifies the recipients that there's contractual retainage being withheld on the project, and as long as all other requirements are followed, that will likely be sufficient to meet the requirements for a Notice of Contractual Retainage created by 53-057. As a reminder - recall that I'm not able to provide you with legal advice or how to fill out any specific form. Though, I believe the information above should help you to determine what information must appear on a Notice of Contractual Retainage.

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