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COLUMBUS, Ohio- According to Dan Jones, Legislative Consultant for the Ohio Nursery and Landscape Association, State Senator Jay Hottinger (R-Newark) has introduced legislation that would prohibit the practice of withholding "retainage" on public construction projects.
"In the construction industry it is fairly common for owners and/or contractors to withhold a certain percentage of the bid as 'hostage' until the final work has been satisfactorily completed," Jones said in the ONLA publication 'The Buckeye.' "Retainage is a fairly significant problem as American Subcontractors Association statistics show that the average subcontractor is carrying significant retainage receivables as average of 160 days after the subcontractor has successfully completed the work."
Jones added that the ASA and Senator Hottinger are hoping to quell the myths surrounding retainage and prohibit this practice on public projects, allowing subcontractors to get paid upon completion.
For more information on retainage legislation visit www.onla.org/hotline.
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