Federal contracting officers will no longer be required to withhold 10 percent of fees for architectural and engineering services, following a four-year effort spearheaded by the AIA.
The new rule change—published in March by the Federal Acquisition Regulation Council (FAR), which is made of up the DOD, GSA, and NASA—classifies retainage as discretionary. If contracting officers choose to require retainage, it can be set it at a rate below 10 percent.
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