Ex. Summary:

House Bill 21-1167 limits retainage in private construction contracts to 5%, ensuring fair and timely payments for contractors and subcontractors while maintaining financial accountability for property owners. This law applies to private construction projects valued at $150,000 or more, excluding single-family and small multifamily developments. It prevents excessive withholding of payments, requiring contractors and subcontractors to provide lien waivers for paid amounts while allowing property owners to retain some financial security for project completion. The legislation enhances cash flow stability in the construction industry, alleviating financial strain on contractors while ensuring owners have mechanisms to address defects or incomplete work. The bill establishes a fairer and more predictable payment system within private construction contracts by standardizing retainage practices.