Md. Code Regs. 21.07.02.05-3

Current through Register Vol. 51, No. 21, October 18, 2024

Section 21.07.02.05-3 - Retainage

Mandatory provisions for all construction contracts:

A. Sections A-E apply if the contractor has furnished 100 percent payment security and 100 percent performance security.

B. The contractor may not retain from any payment due a subcontractor a percent of the payment greater than the percent for retainage specified in the contract.

C. A subcontractor at any tier may not retain from any payment due a lower tier subcontractor a percent of the payment greater than the percent of payments retained from the subcontractor.

D. A contractor and a subcontractor are not prohibited, by §§A and B, from withholding an amount in addition to retainage if the contractor or subcontractor determines that a subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount.

E. The contractor and each subcontractor at any tier shall include, in all of their subcontracts for work called for by this contract, wording that incorporates the provisions of §§B-E.

Md. Code Regs. 21.07.02.05-3

Regulation .05-3 adopted effective July 9, 2001 (28:13 Md. R. 1216)