It wasn't that long ago when broad
retainage clauses, which allow the
GC to set conditions on a sub's final
payment, were a standard part of
agreements with subcontractors. If the
subs wanted the work, they signed the
contract the way it was presented.
Otherwise, the general contractor
found someone else who would agree
to the terms.
My, how times have changed. Lately,
anyone who's successful at getting an
electrician or a plumber just to show up
should be considered lucky. And subs
are using their newfound clout to cross
out those retainage clauses completely.
In a subcontract, a retainage clause
allows the general contractor to tie
final payment for a subcontractor's
work to conditions other than the subcontractor's