Nevada Reduces Retention to 5% Maximum

With the New Year, Nevada has reduced the maximum amount of retention that may be withheld from Contractors and Subcontractors to five percent (5%). SB254, effective for all contracts entered into on or after January 1, 2016, reduces the maximum amount of retention that may be withheld from private works construction payments to five percent. Caution is needed here, because any subcontracts entered into after January 1st on projects for which general or higher-tiered contractors signed before January 1, 2016 will be subject to the new maximum rate. As such, general and higher tier contractors who may have agreed to a retention rate above 5% for themselves, will be restricted from withholding more than five percent on subcontractors for that project if the subcontracts are executed after January 1st. See the full text of the bill here:

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