Retainage Reform Bill (H.B. 208) Gains Steam
Kegler Brown Construction Newsletter September 1, 2003
Representative Young, Chairman of the House Commerce and Labor Committee, and others have introduced a bill that would virtually eliminate retainage on public work in Ohio as well as on private work when there is a bond in place.
Other provisions in the bill would require payment in full before a certificate of occupancy would be issued unless specific work was identified as incomplete or unsatisfactory.
Many subcontractors believe retainage is an antiquated process that simply erodes profit margins and adds to the cost of construction and emphasize that both the Ohio Department of Transportation and the Federal Government have eliminated retainage with no adverse effects.
Those with opinions on H.B. 208 should contact state legislators, particularly House members, to express their views on this important subject.
More hearings on the bill are expected soon.