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RE: Contractor may request that the retainage be reduced to the value of the work remaining uncompleted on the project. Retainage withheld from subcontractors cannot exceed 5%. If the contract is less than or equal to $35,000, the public entity and contractor can agree to withhold 50% of the contract price instead of requiring a bond.

1 year ago

Can you please guide me to where this law or statue.. is? So I can reference it when I show it to my boss? We have had many jobs >$35,000 where they have required 10% retention.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
Senior Legal Associate Levelset
437 reviews

That’s a good question. It appears that the portion of the Levelset site (specifically, Washington’s retainage requirements for public projects) quoted in your question was based on prior Washington retainage laws that have since become outdated.

The portion that was quoted in your question above has been updated to read as follows (under Does Washington limit the amount of retainage that can be withheld from a contractor?): “Contractor may request that the retainage be reduced to the value of the work remaining uncompleted on the project. Retainage withheld from subcontractors cannot exceed 5%. If the contract is less than or equal to $150,000, the public entity and contractor can agree to withhold 10% of the contract price instead of requiring a bond.”

This section is pursuant to RCW §60.28.011 and RCW 39.08.010 which place limitations on what amounts of retainage can be withheld on Washington public projects.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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Anonymous

Hello I am being requested to write a letter to request reduction in retainage, I need to know what I should write.

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