LPA Manual Updates: Retainage Reasons for retainage continued: Third party claims filed or reasonable evidence that a claim will be filed Failure to make timely payments for labor, equipment or materials Damage to a contractor, subcontractor or material supplier Reasonable evidence that a subcontractor or material supplier cannot be fully compensated under its contract with the contractor for the unpaid balance or the contract sum Citation by the enforcing authority for acts of the contractor or subcontractor which do not comply with any material provision of the contract and which result in a violation of any federal, state or local law regulation or ordinance applicable to that project causing additional costs or damages to the owner.
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