We are a subcontractor in Colorado, we entered into a contract for $43K. The contract that was signed states that retainage will be 10%, however I thought that Colorado Limited this to 5%. The customer is stating that the subcontract agreement supersedes the law. Is this accurate?
Is the value of the project in excess of $150,000? If so, then the law applies and covers all subcontracts and supply agreements of all tiers even if they are less than $150,000.
I forgot to note there are some exemptions. This does not apply in contracts between a private owner and contractors for single-family dwellings or multifamily dwellings not exceeding four units or contracts with a public entity.
I am unsure of the total project value
Ask the contractor or owner as to the value. Going forward, always ask for the value of the project before you sign a contract that includes retainage terms.
Colorado has limited retainage to 5% for construction project over $150K. Your part does not have to be $150K, if the entire project is over $150K.