Federal contracting officers will no longer be required to withhold 10% of fees for architectural and engineering services, following a four-year effort of industry lobbying. Published in March by the Federal Acquisition Regulation Council, the new rule says retainage is discretionary. If contracting officers choose to require retainage, it can be set below 10%. “It shocked me … I couldn’t let it go unchallenged.” — Paul Renker, Architect The new rule also clarifies that “any amounts retained should not be held over beyond the satisfactory completion” of the contract. Previously, retainage could be held until completion. Small businesses applaud the
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.