We are a Sub of a Sub and retention is being withheld even after a certificate of occupancy has been issued. what is the percentage rate for interest on both private and public projects? We have two instances happening at this time. Jobs were completed in 2019. How do we begin this process of collecting money owed?
I’m sorry to hear you are not being paid. If the jobs were finished in 2019, it seems retention is long overdue. Utah has a statute requiring retention to be paid within 45 days of completion (with completion being defined in rather complicated terms). If retention is not paid when due, the party wrongfully withholding the retention can become liable to you for not only the principal and interest owed, but also a 2% per month penalty on the amount wrongfully withheld as well as attorneys’ fees and legal costs.
The interest rate is either the rate stated in your contract or, if none is stated, then 10% per annum (both private and public jobs), unless the subcontractor who hired you was fully paid for your work, in which case your interest rate increases to 12% per annum.
I hope this is helpful. If I can be of further assistance, just let me know.