Georgia

Retainage

Public works. Georgia law limits retainage on public works construction contracts and provides for its reduction once a project passes a stated point of completion, with release after final completion and acceptance. The percentage and the reduction trigger are set in the statute; confirm the current figures for the kind of public entity you are contracting with.

Private works. Georgia does not set a general statutory cap on retainage for private construction. The percentage and release terms are set by contract.

Prompt payment

Georgia's Prompt Pay Act applies to construction contracts generally, public and private, with some exclusions. Under it, an owner generally must pay a contractor within 15 days of receiving a pay request, and a contractor generally must pay subcontractors within 10 days of receiving payment for their work. Late payments accrue interest at 1 percent per month unless the contract sets a different rate.

Two features of the Act matter in practice. First, the Act expressly allows the parties to vary its terms by contract, so a signed contract with different payment periods generally controls. Second, payment may be withheld for defined reasons such as unsatisfactory progress, defective work or third-party claims, if notice is given as the Act requires.

Official sources

Georgia's official code is published through the Georgia General Assembly, which provides access to the Official Code of Georgia Annotated. The Prompt Pay Act is at Title 13, Chapter 11; public works retainage provisions are in Title 13, Chapter 10. Confirm the current text through the General Assembly's site or with your attorney.