Alaska HB389 regulates retainage on construction contracts, setting limits and timelines for payments.

HB389 amends Alaska statutes to regulate retainage on construction contracts. It limits the amount of retainage that can be withheld to five percent of the total progress payment or contract price. The bill mandates that subcontractors must be paid within eight working days of receiving payment from the prime contractor. It also requires that retainage be placed in an interest-bearing escrow account, with interest accruing on unpaid retainage. If retainage is not paid within specified periods, penalties and interest apply.

Alaska HB389 regulates retainage on construction contracts, setting limits and timelines for payments.

HB389 amends Alaska statutes to regulate retainage on construction contracts. It limits the amount of retainage that can be withheld to five percent of the total progress payment or contract price. The bill mandates that subcontractors must be paid within eight working days of receiving payment from the prime contractor. It also requires that retainage be placed in an interest-bearing escrow account, with interest accruing on unpaid retainage. If retainage is not paid within specified periods, penalties and interest apply.