Minnesota HF552 allows uncollectible judgments against prime contractors to be paid from contract retainage and requires direct payments to.

Minnesota HF552 amends state contract law to allow uncollectible judgments against prime contractors to be paid from contract retainage. If a prime contractor goes out of business or declares bankruptcy, and the state agency has retainage funds, the state agency can pay subcontractors from the retainage. If the retainage is insufficient, the state agency can distribute pro rata shares to subcontractors based on the principal amounts due.

Minnesota HF552 allows uncollectible judgments against prime contractors to be paid from contract retainage and requires direct payments to.

Minnesota HF552 amends state contract law to allow uncollectible judgments against prime contractors to be paid from contract retainage. If a prime contractor goes out of business or declares bankruptcy, and the state agency has retainage funds, the state agency can pay subcontractors from the retainage. If the retainage is insufficient, the state agency can distribute pro rata shares to subcontractors based on the principal amounts due.