It isn’t bad enough that the owners don’t have to pay the GC or the subcontractors for retention until AFTER the GC sends an actual request. Most good GCs will do so upon substantial completion and occupancy permits are granted. The bad ones take their time because it doesn’t hurt them to hold onto your money.
That said there is a new twist. The phase twist. Let’s say a job has phase 1, phase 2 and phase 3. Phase 1 had it’s own contract and phases 2/3 had a combined contract. Even though the building defined in phase 2 has been substantially occupied since August and a ribbon cutting ceremony in September one might think it is time to release retention. Nope the GC is hanging their hat on not paying retention until phase 3 is fully complete.
This happened to be a public project but it is happening as well with apartment buildings with multiple units being completed, sold/rented/occupied but no retention because all 10 buildings aren’t done yet. Bet you didn’t know you were a banker did you?
US versus Them
GCs also need to…This one is actually funny.
