ST. PAUL – In order to better assist those who have secured their first job in the skilled trades, State Representative Jason Rarick (R-Pine City) is sponsoring legislation that will help subcontractors get paid in a timelier manner.
“Right now, an issue is out there that a portion of contracts is withheld until everybody is finished and all of the work is completed,” Rarick said. “This is very hard on our early-in contractors.”
Rarick said agencies are allowed to withhold these retainage funds, believing that it will help ensure a construction project will be successfully completed.
Rarick’s proposal requires a release of retainage on a project to be made within 45 days after the prime contractor’s work is substantially complete – or when it can be occupied or used for its intended purpose.
“Not only will it give a trigger date as to when this retainage must be paid, but it also specifies how much can be withheld for incomplete work,” Rarick said. “This way we’re not holding all contractors responsible while making sure others complete their work.”
Rarick’s bill was recently approved in the Minnesota House Government Operations Committee, and now heads to the State Government Finance Committee for further debate.