Don’t let the Public Owners hold your money!
Don’t let the Public Owners hold your money!
Some Florida Municipalities may not know that the amount of the allowable retainage was changed effective October 1, 2020. The links to the appropriate statutes are listed as a Resource on the Florida Surety Bonds website. Retainage being held now can’t be more than 5%. The Statute pertaining to Public Construction Retainage (FL Statute 255.078) and the Local Government Prompt Payment act, FS 218.735, was also amended .
The Retainage rule change does not apply to contracts with Florida Department of Transportation under Florida Statute Ch. 337. It also doesn’t apply to construction contracts entered into, pending approval, or advertised by the governmental entity, on or before October 1, 2020, or contracts with Federal Funding.
By Susan Reich
