Michigan | Construction Law
Legal Question
Releasing retainage
After completing a $3 million project for a local church, their loan company is refusing to release the 5% retainage until we get Full Unconditional Lien Waivers from all of the subcontractors. In order to get signatures on Full Unconditionals we must pay them first, then be reimbursed our full retainage amount. (To do this, we will have to take a loan out, pay interest on it, and hope the loan agency then pays us in a timely manner) We have never operated this way, and even all of the subs know they don't get paid until we get paid. The loan agency basically has us cornered however, if we want to close the job, we have no other choice. Are there any other avenues we can take? What does the law actually state regarding releasing retainage?
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Read More Answered By: Patrick Tracy |
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