Montana Code 28-2-2110. Limit on retainage
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28-2-2110. Limit on retainage. (1) The maximum retainage applied to construction contracts subject to the provisions of this part may not exceed 5%.
Terms Used In Montana Code 28-2-2110
- Contract: A legal written agreement that becomes binding when signed.
- Contractor: means a person who has signed a construction contract with an owner. See Montana Code 28-2-2101
- Owner: means a governmental entity or private entity that has a legal interest in the real property improved or to be improved by the performance of the construction contract. See Montana Code 28-2-2101
- Subcontractor: means a person who has contracted with a contractor or another subcontractor for the purposes of performance of all or a part of a subcontract. See Montana Code 28-2-2101
(2)The retainage percentage withheld by an owner, as provided in subsection (1), from a construction contractor is the maximum retainage that a construction contractor may withhold from a subcontractor.
(3)Retainage must be released upon the final acceptance of each portion of work for which a separate price is stated in the construction contract.