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Is a Developer allowed to hold retention after Final Completion and Acceptance, even though there are claims on the job?
The project has been completed and Final Acceptance has been issued. Can the Developer hold retention that has been billed because there are outstanding claims on this project?
3 replies
Oct 22, 2019
What if we the General Contractor have a claim against the Agency and have provided conditional releases with the claim amount as the exception?
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Oct 22, 2019
It depends on your contract. Generally, retention is due once the project is completed and accepted by the owner. If you have lien claimants who contend you didn't pay them, the owner may be entitled to withhold up to 125% of the amount in dispute from you to pay the other claimants.
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Oct 22, 2019
It should not change the right of the owner to withhold if there is a legitimate dispute.