§ 45-1204 — Withholdings; authorized

When work has been performed pursuant
to a contract, an owner, a contractor, or a subcontractor may
only withhold payment:
(1) For retainage, in an amount not to exceed
the amount specified in the applicable contract, which shall not exceed a
rate of ten percent. If the scope of work for the contractor or subcontractor
from which retainage is withheld is fifty percent complete and if the contractor
or subcontractor has performed work in accordance with the provisions in the
applicable contract, no more than five percent of any additional progress
payment may be withheld as retainage if the contractor or subcontractor provides
or has provided satisfactory and reasonable assurances of continued performance
and financial responsibility to complete the work;
(2) Of a reasonable amount, to the extent that such withholding
is allowed in the contract, for any of the following reasons:
(a) Reasonable evidence showing that the contractual completion
date will not be met due to unsatisfactory job progress;
(b) Third-party claims filed or reasonable evidence that such
a claim will be filed with respect to work under the contract; or
(c) Failure of the contractor to make timely payments for
labor, equipment, subcontractors, or materials; or
(3) After substantial completion, in an amount not to exceed
one hundred twenty-five percent of the estimated cost to complete the work
remaining on the contract.

Legislative History

Source: Laws 2010, LB552, § 4; Laws 2014, LB961, § 7.