Public Act 16-104, effective 07/01/16, “AN ACT CONCERNING PUBLIC WORK CONTRACT RETAINAGE AND ENFORCEMENT OF THE RIGHT TO PAYMENT ON A BOND.”
There has been a change in the Retainage Requirement for state projects that was considered during the past Legislative session and passed in June 2016, under PA 16-104.
Effective 07/01/16, the awarding state authority shall not withhold more than 7.5% retainage for state projects. The amount of retainage will be reduced to 5% once the contract is 50% complete. Prime and General Contractors on state projects must also adhere to these new requirements for subcontractors.
Please see PA 16-104 for further information. www.cga.ct.gov/2016/ACT/pa/2016PA-00104-R00HB-05328-PA.htm.
Based on this new information and to keep the contractor community well-informed, the University would like to ensure contractors that all new contracts, effective 07/01/16, from the University will conform to the new retainage requirement.