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Retainage 10% Maryland -Paid upon termination of contract??

Maryland

In Maryland Licensed contractor- Residential job - homeowner has 203K Loan, bank has withheld 10% retainage per draw. Contract went south Terminated 2/3 thru, passed all city inspections, passed all HUD inspections. Homeowners have informed the bank of many imaginary deficiencies, (and some bugs we should fix, which we have offered to more than once) Homeowners have estimates for ridiculous dollars to fix there "problem" Bank is witholding the retainage of 16k against homeowner claims. ---- Shouldn't retainage for HUD inspected, completed work (per draw sheet) be paid in full, AND THEN if there are bugs to fix, we can fix them under warranty??

1 reply

Jul 26, 2021
Your question misses the real issue-- you must deal with the customer's complaints, head on. Your issue is not with the bank. If you are entitled, then sue. If you are entitled to imposition of a mechanic's lien, give notice and proceed, as per the Statute.
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