Florida Retainage Disputes in Boca Raton: When Contractors and Subcontractors Fight for Final Payment
You finished working on a Boca Raton construction site. You held up your end of the deal, but the last chunk of your payment is still sitting in someone else’s account, and getting it released feels like pulling teeth.
Retainage disputes are one of the most frustrating and common payment problems in Florida construction. Our experienced Boca Raton retainage lawyer explains how retainage works, when withholding crosses a legal line, and what you can do to get paid.
How Retainage Works and How Florida Law Applies
Retainage is a portion of each payment that the owner withholds from the contractor during a construction project. The idea is to give the owner some financial leverage to ensure the work gets done right and the project reaches completion. Contractors do the same thing with their subcontractors, holding back a percentage of each payment until the sub’s portion of the work is finished.
It all sounds reasonable, but retainage disputes in South Florida happen frequently. Common reasons include:
- An owner withholds retainage long after substantial completion.
- A general contractor releases retainage from the owner but never passes it down to their subcontractors.
- Disputes over whether the project actually reached substantial completion, which triggers the obligation to release funds.
- An owner uses retainage as leverage to negotiate a discount on work they already accepted.
- Disagreements over punch list items that one side considers minor and the other uses to justify holding the money indefinitely.
Under Florida Statute Section 255.078, on public projects the retainage rate cannot exceed ten percent, and once the project is fifty percent complete, the owner must reduce retainage to five percent if the work is on track. Private projects follow similar guidelines under Florida Statute Section 715.12.
What You Can Do When Retainage Disputes in South Florida Arise
Florida law gives contractors and subcontractors real tools to recover withheld funds, but strict timelines apply. If your retainage is being held up, here is what you can do:
- Send a written demand for payment to put the other party on formal notice.
- Check whether you still have an active construction lien right under Chapter 713 of the Florida Statutes.
- Review your contract for dispute-resolution requirements, such as mandatory mediation.
- Document the completion date, any punch list communications, and every payment received and withheld.
Before the situation escalates any further, contact our experienced Boca Raton retainage lawyer. South Florida retainage disputes can escalate into lien foreclosure actions if they are not addressed promptly.
Request a Consultation Today With Our Experienced Boca Raton Retainage Lawyer
Waiting on retainage that should already be in your pocket is beyond frustrating. It’s a serious problem that demands immediate attention. Our experienced Boca Raton construction litigation lawyer provides the trusted local legal guidance you need.
At Neuman Law, P.A., we help contractors and subcontractors throughout South Florida recover withheld retainage and protect their payment rights. Our office serves clients in Boca Raton, Palm Beach County, Martin County, Broward County, Miami-Dade County, Monroe County, and Hillsborough County. Request a consultation today.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0255/Sections/0255.078.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0715/Sections/0715.12.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0713/0713.html