Holding back statutory 10% retainage
I am on the brink of signing a cost plus 10% contract with the builder I have selected. In TX, (maybe everywhere), it is strongly recommended that I hold back 10% "statutory retainage" for 30 days after contract completion to protect me in the event that my contractor doesn't pay his subs or suppliers OR he pays them, but say, the foundation guy doesn't pay his concrete supplier. It keeps me from being personally liable for the concrete and can prevent a lien from being filed on my property.
My lawyer is advising me to withold the 10% which I wholheartedly agree with, but I can hear my builder saying that I have just eliminated his 10% commission and he will have to wait 9 mos. for it. Any ideas on how to handle this with my builder?
This post was edited by BuildinginTXhillctry on Wed, Apr 2, 14 at 19:30