§ 4005 - Retainage
§ 4005. Retainage
(a) If payments under a construction contract are subject to retainage, any amounts which have been retained during the performance of the contract and which are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.
(b) If an owner is not withholding retainage, a contractor may withhold retainage from its subcontractor in accordance with their agreement. The retainage shall be paid within 30 days after final acceptance of the work.
(c) Notwithstanding any contrary agreement, a contractor shall pay to its subcontractors, and each subcontractor shall in turn pay to its subcontractors, within seven days after receipt of the retainage, the full amount due to each such subcontractor.
(d) If an owner, contractor or subcontractor unreasonably withholds acceptance of the work or fails to pay retainage as required by this section, the owner, contractor or subcontractor shall be subject to the interest, penalty and attorneys' fees' provisions of sections 4002, 4003 and 4007 of this title. (Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)