436.303. Contract provisions--retainage.
Contract provisions--retainage.
436.303. A contract or agreement may include a provision for theretainage of a portion of any payment due from the owner to the contractor,not to exceed ten percent of the amount of such payment due pursuant to thecontract or agreement, to ensure the proper performance of the contract oragreement, provided that the contract may provide that if the contractor'sperformance is not in accordance with the terms of the contract or agreement,the owner may retain additional sums to protect the owner's interest insatisfactory performance of the contract or agreement. The amount or amountsso retained by the owner shall be referred to in sections 436.300 to 436.336as "retainage", and shall be held by the owner in trust for the benefit of thecontractor and contractor's subcontractors, sub-subcontractors, and suppliersat whatever tier who are not in default, in proportion to their respectiveinterests. Such retainage shall be subject to the conditions and limitationslisted in sections 436.300 to 436.336.
(L. 2002 H.B. 1403)