Maine Revised Statutes Title 10 Sec. 1116 – Retainage
Current as of: 2023 | Check for updates
|
Other versions
1. Payment. If payments under a construction contract are subject to retainage, any amounts retained during the performance of the contract and due to be released to the contractor upon completion must be paid within 30 days after final acceptance of the work.
[PL 1993, c. 461, §1 (NEW).]
Terms Used In Maine Revised Statutes Title 10 Sec. 1116
- Contract: A legal written agreement that becomes binding when signed.
- Contractor: means a person or entity that contracts with an owner to perform work on real property. See Maine Revised Statutes Title 10 Sec. 1111
- Material supplier: means any person or entity that has furnished or contracted to furnish materials or supplies in connection with a construction contract. See Maine Revised Statutes Title 10 Sec. 1111
- Owner: includes successors in interest of the owner and agents of the owner acting within their authority. See Maine Revised Statutes Title 10 Sec. 1111
- Subcontractor: means any person or entity that has contracted to perform work for or provide services to a contractor or another subcontractor in connection with a construction contract. See Maine Revised Statutes Title 10 Sec. 1111
- Work: means to build, alter, repair or demolish any improvement on, connected with or beneath the surface of any real property, or to excavate, clear, grade, fill or landscape any real property, to construct driveways, private roadways, highways and bridges, drilled wells, septic systems, sewage systems or utilities, to furnish materials for any of those purposes or to perform labor upon real property. See Maine Revised Statutes Title 10 Sec. 1111
2. Retainage for subcontractors. If an owner is not withholding retainage for a subcontractor‘s work, a contractor may withhold retainage from its subcontractor or material supplier in accordance with their agreement. The retainage must be paid within 30 days of final acceptance of the work.
[PL 1993, c. 461, §1 (NEW).]
3. Payment of retainage to subcontractors. Notwithstanding any contrary agreement, a contractor shall pay to its subcontractors or material suppliers and each subcontractor shall in turn pay to its subcontractors or material suppliers, within 7 days after receipt of the retainage, the full amount due to each subcontractor or material supplier.
[PL 1993, c. 461, §1 (NEW).]
4. Withholding retainage. If a contractor or subcontractor unreasonably withholds acceptance of the work or materials or fails to pay retainage as required by this section, the owner, contractor or subcontractor is subject to the interest, penalty and attorney’s fees provisions of this chapter.
[PL 1993, c. 461, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 461, §1 (NEW).