Missouri Release of Retainage Bond
Missouri is unique when it comes to retention held on private construction projects. Section 436.300 of the Missouri Revised Statutes provides contractors with the ability to present the project owner and/or GC with a written request for release of retainage. This request must be accompanied by acceptable substitute security in an amount equal to the retainage. A surety bond is an acceptable form of substitute security. This provision applies only to private construction work in Missouri.
How does the bond impact retainage?
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For a new project, the bond will prevent the owner and GC from holding retainage on your company.
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For a project already in progress, the statute provides for any accumulated retainage to be paid to your company within five working days of presentation of the bond and prevents retainage from being held on future pay requests.
How is the bond premium calculated?
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If a performance and payment bond is also issued to support the project, the retainage bond cost is typically calculated using a rate of $5 per thousand dollars of the retainage bond amount.
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If a performance and payment bond is not issued to support the project, the retainage bond cost is typically calculated using a rate of $10 per thousand dollars of the retainage bond amount.
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Exact bond rates will be determined upon the establishment of your bond program.
What information is required to request a bond?
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For our established clients, we just need the contract pages showing all of the parties to the contract, the contract amount and the retainage provision.
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For new clients, we need the contract information plus some financial information. Please contact us for details.
Call - 314-206-4118 or Click Here to get started!