Maryland Relinquishment Provision - All offset Wells
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FAQ
A common construction contract usually states that the amount of retention money is 5% of the contract's value or a 10% deduction for every progress payment you receive. You should see this amount of retention money in your payment invoice.
On private projects, retainage must be released by the property owner no later than 90 days after substantial completion. Once payment is received, retainage should be released to subs and suppliers within 7 days.
On all contracts, 10 % shall be retained. Once 50% completion of the work is reached, the mayor has discretion to eliminate or reduce the retention.
Usually, this money can be claimed after the actual building's completion and/or after the defects liability period. But, if they are giving you a bad time in getting this money back, then you can file for adjudication. As mandated by law, the money retention can also happen while undergoing adjudication.
Permits a contractor or subcontractor to provide a retainage bond, which an owner or contractor must accept, in an amount no greater than 5% of the monies earned and release funds retained within 30 days of accepting the bond.
