State Senators are hearing about retainage – the practice of building owners keeping part of the money owed to a contractor to ensure the job is done correctly. Some contractors say the practice is subject to certain abuses. Larry Walker is an electrical contactor from St. Louis. He tells a Senate committee the money can be withheld from the contractor longer than the contractor would have rights to try to get the money. Walker doesn’t want the retainage eliminated. He just wants owners to come up with some sort of collaterol to secure the retainage … such as certificates of deposit or lines of credit. Opponents of the legislation have yet to have their say in front of theSenate committee looking at the bill.
