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Retainage reduction on HUD project

North CarolinaRetainage

Hello , I’m a wood framing sub contractor working on a HUD multi family project. We do turnkey So..labor and materials to the tune of 1-3 million, My sub contract with GC states 10% retainage be withheld from each progressive draw, it additionally states that the retainage will be reduced to 5% at 50 % completion, and the to 2% at substantial completion. The project is scheduled to be complete in May 2020. So they are way past 50% complete, I believe this reduction in retainage is a requirement from HUD, do you have any advice who I should contact to file a complaint with HUD. Office of Insiector General?

1 reply

Apr 6, 2020
Before filing a complaint, it might be worthwhile to provide a written request for retainage to be released. Sending that to your customer might prod them to do what they're required to by their contract. Even if not, that should work as a first step for discussing or negotiating the matter with the customer. Regardless - Contacting your local HUD office might be a good first step for finding out how to make a complaint. Or, placing a complaint with the Office of the Inspector General might be useful, too.
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