(a) "Retention proceeds" defined.- In this section, "retention proceeds" means moneys earned but retained under the terms of a contract or subcontract:
(1) By an owner to guarantee performance of the contract by a contractor;
(2) By a contractor to guarantee performance of a subcontract by a subcontractor; or
(3) By a subcontractor to guarantee performance of a subcontract by another subcontractor.
(b) Applicability of section.- This section does not apply to:
(1) A contract in an amount less than $250,000; or
(2) A contract or subcontract for a project funded wholly or in part by or through the Department of Housing and Community Development.
(c) Limit of proceeds.- Except as provided in this section:
(1) If a contractor has furnished 100% security to guarantee the performance of a contract and 100% security to guarantee payment for labor and materials, including leased equipment:
(i) The retention proceeds under the terms of a contract may not exceed 5% of the contract price; and
(ii) The retention proceeds of any payment due under the terms of a contract from an owner to a contractor may not exceed 5% of the payment;
(2) The retention proceeds of any payment due under the terms of a contract from a contractor to a subcontractor may not exceed the percentage of retention proceeds from the owner to the contractor; and
(3) The retention proceeds of any payment due under the terms of a contract from a subcontractor to another subcontractor may not exceed the percentage of retention proceeds from the contractor to the subcontractor.
(d) Withholding of additional amount.- This section may not be construed to prohibit the withholding of any amount due:
(1) From the owner to the contractor if the owner reasonably determines that the contractor's performance under the contract provides reasonable grounds for withholding the additional amount;
(2) From the contractor to any subcontractor if the contractor reasonably determines that the subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount; or
(3) From a subcontractor to another subcontractor if the subcontractor determines that the other subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount.
(a) "Retention proceeds" defined.- In this section, "retention proceeds" means moneys earned but retained under the terms of a contract or subcontract:
(1) By an owner to guarantee performance of the contract by a contractor;
(2) By a contractor to guarantee performance of a subcontract by a subcontractor; or
(3) By a subcontractor to guarantee performance of a subcontract by another subcontractor.
(b) Applicability of section.- This section does not apply to:
(1) A contract in an amount less than $250,000; or
(2) A contract or subcontract for a project funded wholly or in part by or through the Department of Housing and Community Development.
(c) Limit of proceeds.- Except as provided in this section:
(1) If a contractor has furnished 100% security to guarantee the performance of a contract and 100% security to guarantee payment for labor and materials, including leased equipment:
(i) The retention proceeds under the terms of a contract may not exceed 5% of the contract price; and
(ii) The retention proceeds of any payment due under the terms of a contract from an owner to a contractor may not exceed 5% of the payment;
(2) The retention proceeds of any payment due under the terms of a contract from a contractor to a subcontractor may not exceed the percentage of retention proceeds from the owner to the contractor; and
(3) The retention proceeds of any payment due under the terms of a contract from a subcontractor to another subcontractor may not exceed the percentage of retention proceeds from the contractor to the subcontractor.
(d) Withholding of additional amount.- This section may not be construed to prohibit the withholding of any amount due:
(1) From the owner to the contractor if the owner reasonably determines that the contractor's performance under the contract provides reasonable grounds for withholding the additional amount;
(2) From the contractor to any subcontractor if the contractor reasonably determines that the subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount; or
(3) From a subcontractor to another subcontractor if the subcontractor determines that the other subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount.
(a) "Retention proceeds" defined.- In this section, "retention proceeds" means moneys earned but retained under the terms of a contract or subcontract:
(1) By an owner to guarantee performance of the contract by a contractor;
(2) By a contractor to guarantee performance of a subcontract by a subcontractor; or
(3) By a subcontractor to guarantee performance of a subcontract by another subcontractor.
(b) Applicability of section.- This section does not apply to:
(1) A contract in an amount less than $250,000; or
(2) A contract or subcontract for a project funded wholly or in part by or through the Department of Housing and Community Development.
(c) Limit of proceeds.- Except as provided in this section:
(1) If a contractor has furnished 100% security to guarantee the performance of a contract and 100% security to guarantee payment for labor and materials, including leased equipment:
(i) The retention proceeds under the terms of a contract may not exceed 5% of the contract price; and
(ii) The retention proceeds of any payment due under the terms of a contract from an owner to a contractor may not exceed 5% of the payment;
(2) The retention proceeds of any payment due under the terms of a contract from a contractor to a subcontractor may not exceed the percentage of retention proceeds from the owner to the contractor; and
(3) The retention proceeds of any payment due under the terms of a contract from a subcontractor to another subcontractor may not exceed the percentage of retention proceeds from the contractor to the subcontractor.
(d) Withholding of additional amount.- This section may not be construed to prohibit the withholding of any amount due:
(1) From the owner to the contractor if the owner reasonably determines that the contractor's performance under the contract provides reasonable grounds for withholding the additional amount;
(2) From the contractor to any subcontractor if the contractor reasonably determines that the subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount; or
(3) From a subcontractor to another subcontractor if the subcontractor determines that the other subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount.
