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Retainage Law Now In Effect – What Architects Need To Know

On August 8, 2014, over the objections of architects, engineers, developers, the commercial real estate industry, housing advocates and others, Governor Deval Patrick signed into law SB 2271 - An Act relative to fair retainage payments in private construction (Chapter 276 of 2014). 

Effective November 8th, the new law limits the amount of permitted retainage and establishes specific procedures for its release. It applies to all private construction contracts valued above $3 million dollars and excludes 1-4 family construction.

As the procedures set forth in AIA Document A201 and other construction contract forms must be revised so that they are coordinated with the statutory requirements, AIA Massachusetts, in working with legal counsel, has produced a guidance document to help members in these contract discussions with their Owners.

AIA MA memo_final.pdf74.23 KB