We are a subcontractor working on a HUD project in MN. The prime contract says retainage will be 10% in accordance with HUD Form 5370 - General conditions for construction contracts-Public. Does HUD "trump" Mn statute?
1 reply
Dec 5, 2019
While Minnesota places some limit on retainage, parties in Minnesota are entitled to contract around that limitation. Meaning, if a contract specifies an amount over 5% retainage on Minnesota projects, then the contractual retainage amount will apply rather than the statutory limitation.
So, if the contract calls for greater than 5% retainage, Minnesota statute won't limit retainage on the job. The contractual retainage provisions will apply.
For more information on Minnesota's retainage rules: Minnesota Retainage Guide and FAQs.