Senate Bill 405 is now on its way to the Governor’s desk for signature. Yesterday, the Oregon House of Representatives unanimously approved the bill. SB 405 limits the amount of retainage to no more than 5% for the contract price of the work completed for every party in the chain of commerce. Once signed into law, this cap will apply to owners, general and specialty contractors as well as suppliers for public and private construction projects. Limiting the amount of retainage will mean more cash flow and more revenue faster for all contractors. AGC Legislative Committee Chair and Past President, Dee Burch testified in favor of the bill on February 28th in front of the Senate Business and Transportation Committee. Dee Burch underscored that cash flow is a critical issue for all contractors given the current state of the commercial construction industry. He also testified that SB 405 addresses the realities of cash flow in the industry and streamlines the process by establishing a hard and fast 5% retainage cap that everyone can understand and play by.
If you have any questions about this policy, please contact Dee Burch at email@example.com
For questions related to the bill itself, please contact John Rakowitz at (503) 317-1781.