CT contractor retainage

[HV Ken]

I have a client who did work in CT. CT held the 5% retainage as they seem to require. The jobs have been complete for some time, and the contractor would like to get their retainage back.

Does anyone know what the process is for this? I have done some searching, but am not meeting with much success. Any help and/or pointers would be greatly appreciated.

Thanks!

[Guest Taxed]

Assuming this is a private owner which hired this contractor, it must release the retainage with accrued interest within 30 days I believe. If they fail to do that an additional penalty applies. I think your client should send a certified letter demanding release (assuming there is no dispute with the work or other adjustments)

[HV Ken]

Thanks - I finally found this little tidbit buried in the CT pages....

Release of Bond or Claim for Deposited Amount by Nonresident Contractor: A nonresident contractor must request, in writing, that DRS audit the records of the contractor for a project for which a bond was filed with DRS or an amount was withheld and deposited. The nonresident contractor must have filed all Connecticut tax returns due during the term of the contract and must have all applicable records available for inspection by DRS. DRS must receive the request for the bond release or withheld amount within three years after the date of final payment to DRS of amounts withheld and deposited or within three years from the last day of the month succeeding the reporting period in which the nonresident contractor filed a bond for the contract price. To determine whether the deposit may be returned to the nonresident contractor or the nonresident contractor’s bond released, the statute of limitations for any returns due from the contractor during the term of the contract remains open.

[BulldogTom]

HV Ken,

There is a difference between a bond and retentions. I am in CA and not CT, but I would guess the general rules are the same.

BTW - my day job is controller for a construction company, General Contractor.

Retentions should be addressed in the contract with the General. Look at that and see if there is language relating to retentions and when they will be released. Our contract with our subs says upon payment by the owner, we will pay within 7 days. Different contracts have different language. If the general has been paid the retentions, but not paid his subs, the sub can file a lien on the property. The owner will then be notified that the general has not paid all the subs and probably contact the general to get the payments made.

Send me a PM on the side and we can go into much more depth if you want. I will give you my phone number if you want to talk about the subject.

Tom

Hollister, CA