HB 568

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  1
  limit retainage in certain private construction  2
  projects.  3
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That section 4113.63 of the Revised Code be  4
enacted to read as follows:  5
     Sec. 4113.63. (A) As used in this section:  6
     (1) "Contractor," "lower tier material supplier," and  7
"lower tier subcontractor" have the same meanings as in section  8
4113.61 of the Revised Code.  9
     (2) "Material supplier" and "subcontractor" have the same  10
meanings as in section 1311.01 of the Revised Code.  11
     (3) "Owner" means a person who is not a public authority  12
and relates to all the interests either legal or equitable that  13
the person may have in the real estate upon which improvements  14
are made, including interests held by any person under contracts  15
of purchase, whether in writing or otherwise.  16
      (4) "Private project" means construction, alteration,  17
erection, improvement, demolition, removal, digging, or drilling  18
H. B. No. 568  Page 2
As Introduced
any part of a structure or improvement, directly or indirectly,  19
under a contract with an owner. "Private project" includes work  20
or labor performed, or materials furnished, under a contract  21
with an owner, contractor, subcontractor, material supplier,  22
lower tier subcontractor, or lower tier material supplier, so  23
long as the owner of the structure or improvement on which the  24
work or labor is performed, or the materials are used, is not a  25
public authority.  26
       (5) "Public authority" has the same meaning as in section  27
1311.25 of the Revised Code.  28
       (B) Notwithstanding any provision of section 4113.61 of  29
the Revised Code to the contrary, no construction contract or  30
subcontract for a private project with an expected value of  31
greater than one million dollars that is entered into on or  32
after the effective date of this section shall include any  33
provision that requires or permits the withholding of retainage  34
in an amount greater than five per cent of the expected value of  35
the contract or subcontract.  36
       (C) Nothing in this section shall be construed to require  37
payment of a retainage where there is a good faith claim  38
directly related to the work or labor performed, or the  39
materials furnished, by the contractor, subcontractor, material  40
supplier, lower tier subcontractor, or lower tier material  41
supplier.  42