Mississippi enacts retainage reform
Retainage reform in the U.S. continues to gain momentum. Joining Missouri in enacting reform in 2002, Mississippi has enacted legislation that changes its retainage system on public projects. The new law took effect July 1, 2002.
Initial retainage on public projects must be reduced from a maximum of 10% to a maximum of 5%. After the project reaches 50% completion, retainage is required to be reduced to 2.5%. In addition, the new law enhances payment protection for subcontractors by requiring contractors to certify payment to subcontractors.