Section 5.22 Retainage Issues

• Library: Construction Law 2016 Supp

D. (§5.22) Retainage Issues

In 2002, the Missouri legislature adopted landmark legislation regarding retainage that applies to contracts for private construction projects entered into after August 28, 2002. See § 436.300, RSMo Supp. 2013. The law, however, specifically excludes residential construction of four or fewer units. Section 436.336, RSMo Supp. 2013. Section 436.303, RSMo Supp. 2013, sets a ten percent limitation on construction retainages. A construction project owner cannot withhold from a contractor more than ten percent of each progress payment, which is paid when...