Article 19.--KANSAS FAIRNESS IN PUBLIC CONSTRUCTION CONTRACT ACT
16-1904.Retainage; release and withholding thereof;
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) An owner must release the retainage on any undisputed payment due on
a construction project within 30 days after substantial completion of the
project; however, if any subcontractor is still performing work on the project
under its subcontract, an owner may withhold that portion of the retainage
attributable to such subcontract until 30 days after such work is completed.
(c) If an owner, contractor or subcontractor fails to pay
retainage, if any, pursuant to the terms of a contract for public
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.
(d) Nothing in this section shall prevent early release of retainage if it
is
determined by the owner, the contractor and the project architect or engineer,
that a subcontractor has completed performance satisfactorily and that the
subcontractor can be released prior to substantial completion of the entire
project without risk
or additional cost to the owner or contractor. Once so determined, the
contractor shall request such adjustment
in retainage, if any, from the owner as necessary to enable the contractor to
pay the subcontractor in full, and the owner shall, as part of the next
contractual payment cycle, release the subcontractor's retainage to the
contractor, who shall, as part of the next contractual payment cycle, release
such retainage as is due to the subcontractor.
Article 19.--KANSAS FAIRNESS IN PUBLIC CONSTRUCTION CONTRACT ACT
16-1904.Retainage; release and withholding thereof;
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) An owner must release the retainage on any undisputed payment due on
a construction project within 30 days after substantial completion of the
project; however, if any subcontractor is still performing work on the project
under its subcontract, an owner may withhold that portion of the retainage
attributable to such subcontract until 30 days after such work is completed.
(c) If an owner, contractor or subcontractor fails to pay
retainage, if any, pursuant to the terms of a contract for public
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.
(d) Nothing in this section shall prevent early release of retainage if it
is
determined by the owner, the contractor and the project architect or engineer,
that a subcontractor has completed performance satisfactorily and that the
subcontractor can be released prior to substantial completion of the entire
project without risk
or additional cost to the owner or contractor. Once so determined, the
contractor shall request such adjustment
in retainage, if any, from the owner as necessary to enable the contractor to
pay the subcontractor in full, and the owner shall, as part of the next
contractual payment cycle, release the subcontractor's retainage to the
contractor, who shall, as part of the next contractual payment cycle, release
such retainage as is due to the subcontractor.
Article 19.--KANSAS FAIRNESS IN PUBLIC CONSTRUCTION CONTRACT ACT
16-1904.Retainage; release and withholding thereof;
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) An owner must release the retainage on any undisputed payment due on
a construction project within 30 days after substantial completion of the
project; however, if any subcontractor is still performing work on the project
under its subcontract, an owner may withhold that portion of the retainage
attributable to such subcontract until 30 days after such work is completed.
(c) If an owner, contractor or subcontractor fails to pay
retainage, if any, pursuant to the terms of a contract for public
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.
(d) Nothing in this section shall prevent early release of retainage if it
is
determined by the owner, the contractor and the project architect or engineer,
that a subcontractor has completed performance satisfactorily and that the
subcontractor can be released prior to substantial completion of the entire
project without risk
or additional cost to the owner or contractor. Once so determined, the
contractor shall request such adjustment
in retainage, if any, from the owner as necessary to enable the contractor to
pay the subcontractor in full, and the owner shall, as part of the next
contractual payment cycle, release the subcontractor's retainage to the
contractor, who shall, as part of the next contractual payment cycle, release
such retainage as is due to the subcontractor.
