Iowa Release of Retainage Request
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The city must hold the retainage for a period of 30 days after the completion and final acceptance of the improvement. If at the end of the 30-day period claims are on file, the city shall continue to retain from the unpaid funds a sum equal to double the total amount of all claims on file.
An action arising from or related to: residential construction: 10 years; any other kind of improvement to real property: 8 years after the date on which the act or omission of the defendant alleged to have been the cause of the injury or death.
573.2 Public improvements ? bond ? waiver and remedies. The bond may also be required when the contract price does not equal that amount.
Iowa has a two-year general statute of limitations for injuries to persons, ?whether based on contract or tort.? See Iowa Code § 614.1(2). But, two limitation periods typically apply more specifically to construction defect claims in Iowa.
An itemization of the labor or materials yet to be provided, or the reason that the request for release of retained funds is denied, shall be provided to the contractor in writing within thirty calendar days of the receipt of the request for release of retained funds. e.
Statutes of Limitation in Iowa: At a Glance Code SectionIowa Code Annotated (I.C.A.) § 614 et seq.Collection of RentsFive years (I.C.A. § 614.1(5)(b))ContractsWritten: 10 years (I.C.A. § 614.1(5)) Oral: Five years (I.C.A. § 614.1(4))Collection of Debt on AccountFive years (I.C.A. § 614.1(5)(b))7 more rows
Retainage is a percentage of the contract amount that is held until a specific date after the completion of the work. You release retainage by creating a voucher pay item with a Pay Status of A (Available to Pay) for the amount that you want to release. The retainage amount is also referred to as holdback.
Accounting Treatment The client, who owes retainage to the contractor, records retainage as a liability. For example, if a contractor works on a $100,000 project with a ten percent retainage, then they will record $90,000 as accounts receivable and $10,000 as retainage due.
