SENATE BILL NO. 298
INTRODUCED BY B. GLASER, FORRESTER
AN ACT LIMITING THE AMOUNT OF RETAINAGE THAT MAY BE WITHHELD TO 10 PERCENT OF THE TOTAL AMOUNT TO BE PAID TO A CONSTRUCTION CONTRACTOR EXCEPT FOR A RESIDENTIAL PROJECT WITH A TOTAL COST OF LESS THAN $400,000; AMENDING SECTION 28-2-2107, MCA; AND PROVIDING AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Limit on retainage. (1) The maximum retainage applied to construction contracts subject to the provisions of this part may not exceed 10% if the construction contractor is performing by the terms of the contract.
(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.
Section 2. Section 28-2-2107, MCA, is amended to read:
"28-2-2107. Exception for certain residential dwellings. The provisions of this part do not apply to residential
projects or improvements to real property intended for residential purposes that consist of four or fewer residential units
with a total cost of less than $400,000."
Section 3. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 28, chapter 2, part 21, and the provisions of Title 28, chapter 2, part 21, apply to [section 1].
Section 4. Applicability. [This act] applies to contracts entered into or renewed after October 1, 2001.
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