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Retainage Interest on Contracts over 500k

WashingtonRetainage

We are a GC and have offices in Oregon and Washington among a couple other states - I need to know the specifics when it comes to interest that is due to us on contracts over 500k - specifically in Washington and in Oregon. I have read the laws - but i dont feel like it is clear and most specifically how it is calculated and then invoiced.

3 replies

Feb 1, 2021
It is fact specific, depending on the public work contract. Wouldn't a multi-state GC have regular counsel to answer this question?
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Feb 2, 2021
Generally, in Washington, if your Contract does not specify otherwise, you can usually recover pre-judgment interest on a "liquidated sum" at the statutory rate of twelve (12%) percent per annum simple interest. You may want to consider including up to eighteen (18%) percent interest in your contracts - it provides you with a pretty effective negotiation tool to resolve a case short of litigation. Good luck
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Feb 7, 2021
A lot depends upon whether it's a private or public construction project and who is holding the retainage money. Also, what does your contract say? Be sure to closely watch the dates to make sure that you file your lien claims timely because if you are late, even by a day, then all lien rights are gone.
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