An Act To Limit the Amount of Money That May Be Retained on Construction Contracts
Sec. 1. 10 MRSA §1116, sub-§5 is enacted to read:
Sec. 2. Application. This Act applies to a contract entered into on or after the effective date of this Act.
This bill limits the amount of money that may be retained under a construction contract, pending the completion of contractor or subcontractor performance, to 5% of the contract price. The limit applies only to private contracts and not to contracts entered into by governmental entities and only to contracts entered into on or after the effective date of the legislation.