Hello my contract agreement was 10% to be held for retainage in Minnesota. Does the law state that only 5% is to be witheld by contractor or does the law say it can be above 5%?
This is on a construction project.
Thanks
1 reply
Mar 18, 2020
Minnesota owners can't withhold more than 5% retainage unless the parties agree on an amount exceeding 5% in their contract. So, if the contract is silent about retainage maximums, then retainage is capped at 5%. But, if the parties agree to more than 5%, then more than 5% can be retained.
For more information on Minnesota's retainage rules: Minnesota Retainage Guide and FAQs.