Issue link: https://read.dmtmag.com/i/145703
14 • AUGUST 2013 • WORLD FENCE NEWS ASA manual helps subcontractors navigate retainage laws ALEXANDRIA, Va. — "Retainage Law in the 50 States," a reference manual published by the American Subcontractors Association (ASA), is helping construction subcontractors understand retainage laws where the projects they bid and work on are located. As it applies to subcontractors, retainage is the practice of regularly holding a portion of progress payments that subcontractors earn for performing construction services. "In many states, the withheld funds are to be held in escrow, to be paid back to the contractor or subcontractor with interest," the guide explains. "Many states also permit contractors and/or subcontractors to substitute securities in lieu of retainage. The majority of states permit contracting agencies or owners to reduce or even eliminate the rate of retainage once a certain portion of the contract is complete." Each state entry in the manual reviews critical factors in retainage law for private and public work, including the retainage rate permitted under law, retainage release milestones, and any options to provide alternative securities in lieu of retainage. The manual also contains a chart summarizing the major elements of retainage law for each state. Retainage is generally held as an assurance for the timely completion and quality of a contractor's or subcontractor's work. It is calculated as a percentage of the total contract price. However, the practice places a severe financial hardship on contractors and subcontractors. When contractors and subcontractors are forced to complete work without full payment, they, in essence, finance the job, making it difficult to timely pay their own creditors. In some cases, contractors and subcontractors are burdened with sizable retainage receivables long after project completion. The ASA-member law firm and ASA general counsel, Kegler, Brown, Hill and Ritter of Columbus, Ohio prepared the manual, which contains contributions from construction attorneys from across the country. The manual is available to ASA members as a downloadable PDF doc- ument on the ASA web site in the "Contracts & Project Management" section located under "Advocacy & Contracts." Founded in 1966, ASA amplifies the voice of, and leads, trade contrac- tors to improve the business environment for the construction industry and to serve as a steward for the community. For more information on ASA and how to join, visit www.asaonline.com. DoorKing seminar For additional information, visit www.doorking.com or contact the DoorKing sales department at 800826-7493. continued from page 12 highest ratio we want. I actually prefer a lower ratio, maybe 10 students for each instructor," Miller said. Also helping to instruct were DoorKing regional sales managers Tony Thornton, Ed Curry and Chuck Fink. DoorKing, Inc. is one of the largest and oldest manufacturers of access control and vehicular gate operator products in the country. The company has provided their dealers and distributors with factory training programs for over 20 years. DoorKing continually stresses the importance of training and education and continues to create and hold innovative seminars and customized training programs throughout the year at several different locations throughout the country. FENCING & ACCESS CONTROL ONLINE INFORMATION! www. worldfencenews. com World Fence News OnLine includes a database of suppliers with direct links to their web sites! Plus — industry news, trends and more! DIG IN to all your earth drilling projects with power applications and rugged terrain, productivity to tackle large jobs or reliability you need on every project – Little Beaver has it all. DIG IN safely, cleanly and efficiently with Little Beaver. 80 0 -227-7515 Towable Hydraulic Earth Drills Mechanical Earth Drills UN-Towable Hydraulic Earth Drills Hydraulic Earth Drills