16-1804. Retainage; failure to pay.
16-1804
16-1804. Retainage; failure to pay.
(a) An owner, contractor or subcontractor may withhold no more
than 10%
retainage from
the amount of any undisputed payment due.
(b) If an owner, contractor or subcontractor fails to pay retainage, if any,
pursuant to the terms of a contract for private construction or as
required by this act, the
owner, contractor or subcontractor shall pay interest to the contractor or
subcontractor to whom payment was due, beginning
on the first business day after the payment was due, at a rate of 18% per
annum.
History: L. 2005, ch. 156, § 4; July 1.