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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 568
2025-2026
Representatives Mathews, T., Santucci
Cosponsors: Representatives Johnson,
Fischer, Miller, K., Hall, T.
To
enact section 4113.63 of the Revised Code
to
limit retainage in certain private construction projects.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 4113.63 of the Revised Code be enacted to read as follows:
Sec.
4113.63.
(A)
As used in this section:
(1)
"Contractor," "lower tier material supplier," and
"lower tier subcontractor" have the same meanings as in
section 4113.61 of the Revised Code.
(2)
"Material supplier" and "subcontractor" have the
same meanings as in section 1311.01 of the Revised Code.
(3)
"Owner" means a person who is not a public authority and
relates to all the interests either legal or equitable that the
person may have in the real estate upon which improvements are made,
including interests held by any person under contracts of purchase,
whether in writing or otherwise.
(4)
"Private project" means construction, alteration, erection,
improvement, demolition, removal, digging, or drilling any part of a
structure or improvement, directly or indirectly, under a contract
with an owner. "Private project" includes work or labor
performed, or materials furnished, under a contract with an owner,
contractor, subcontractor, material supplier, lower tier
subcontractor, or lower tier material supplier, so long as the owner
of the structure or improvement on which the work or labor is
performed, or the materials are used, is not a public authority.
(5)
"Public authority" has the same meaning as in section
1311.25 of the Revised Code.
(B)
Notwithstanding any provision of section 4113.61 of the Revised Code
to the contrary, no construction contract or subcontract for a
private project with an expected value of greater than one million
dollars that is entered into on or after the effective date of this
section shall include any provision that requires or permits the
withholding of retainage in an amount greater than five per cent of
the expected value of the contract or subcontract.
(C)
Nothing in this section shall be construed to require payment of a
retainage where there is a good faith claim directly related to the
work or labor performed, or the materials furnished, by the
contractor, subcontractor, material supplier, lower tier
subcontractor, or lower tier material supplier.