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Georgia Retainage Law Amended

In the 2021-2022 session, the Georgia General Assembly made substantive changes in the Payment and Retainage Law. The rules still apply to Public Works Construction Contracts[1] and to water or sewer facilities.[2] On and after July 1, 2022, retainage is limited to five percent (5%) of each progress payment, but the owner may release the retainage associated with a subcontractor’s work as it is completed. Previously the statute required release of retainage when fifty percent (50%) of the contract value became due, if the work was progressing satisfactory and timely, but this provision has been eliminated. Additionally, upon substantial completion of the work, the owner was limited to retaining 200 percent of the value of “incomplete minor items,” but the statute now allows retention of 200 percent of the value of any incomplete work. 

[1]  O.C.G.A. § 13-10-80. It does not apply, however, when contract value does not exceed $150,000 or the contract time does not exceed 45 days O.C.G.A. § 13-10-80(c).

[2] O.C.G.A. § 13-10-81.