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Bill

HB 568

Limit retainage in certain private construction projects

136th Legislature (2025-2026) Introduced by Tex Fischer and 5 co-sponsors

HB 568 restricts retainage withholding in Ohio private construction projects to improve contractor cash flow and worker payments.

Referred to committee
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Bill Summary · HB 568

Legislative bill overview

HB 568 would restrict the use of retainage—funds withheld from construction payments—in private construction projects in Ohio. The bill limits how much money contractors and subcontractors can have held back and under what conditions, aiming to improve cash flow for workers and smaller construction firms.

Why is this important

Retainage practices can create significant financial hardship for construction workers and subcontractors who may wait months for final payment. Limiting retainage could improve working capital for small businesses and reduce the financial strain on workers, though it may also affect project owners' ability to ensure quality work completion.

Potential points of contention

  • Impact on project quality assurance: Project owners argue retainage is necessary leverage to ensure contractors complete work to specifications and fix defects before final payment
  • Small vs. large contractor burden: Small subcontractors struggle more with retainage, but large general contractors may pass restrictions upstream, creating uneven impacts across the industry
  • Bonding and insurance implications: Changes to retainage may affect bonding requirements, insurance costs, and lender requirements for construction projects

Compiled from official sources — confirm details with the bill’s official record.

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