Hi, I am a subcontractor working in NM and was wondering about the Closeout Payment vs retainage in NM. If this the "same" with just different verbiage? I am wondering if I can bill the same as other states but change the wording to Closeout Payment instead of Retainage?
Generally, the State of New Mexico does not allow retainage to be withheld on construction projects. However, many contractors/owners have structured their agreements to include a closeout payment line-item of 5-10% of the contract price; which essentially operates in the same manner. Except the funds aren't withheld as retainage, they are yet to be due.
So in short if, under the terms of the contract, closeout payment has become due, billing for that amount at closeout should be acceptable.