Retainage Surety Bond Construction Contracts

     Under current law, a property owner is prohibited from retaining more than 5% of a construction contract as retainage if the contract is at least $150,000. The bill authorizes a contractor to submit a surety bond in lieu of withholding retainage, and the property owner must accept the bond and not withhold the retainage if the bond meets the bill's standards. A subcontractor may require the contractor to submit a bond in lieu of retainage for the subcontractor's portion of the retainage. The contractor may require the subcontractor to submit a like bond to the contractor.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)