Download PDF version (76k) Log In or Register to view the full article as a PDF document.
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 completion