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If working on a military base, is the retainage laws different than the state laws?

North CarolinaConstruction Contract Retainage

Anonymous Contractor

If working on a military base, is the retainage laws different than the state laws? I have work on a military base in North Carolina and as I understand any project over $100k is subject only to a maximum of 5%. Would this still be true on the base or other federal projects? We are a Texas company doing business with another Texas company in North Carolina

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 992 reviews

Dec 16, 2019

A given state's retainage laws will typically not be applicable when working on a federally owned construction project. Instead, retainage will be withheld on federal projects according to the terms of the contract at hand. So, when determining whether retainage can be withheld (and when determining what amounts might be proper), it'd be helpful to first look to the contract terms to see what can be withheld. Also, note that if there are specific issues leading to payment being withheld, payment might be legally held back as a result of that, too. For discussion on retainage and withholding federal projects, these resources should be valuable: - Can Contractors Withhold Retainage on Federal Construction Jobs? - Subcontract Requirements Under the US Prompt Payment Act

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