(a) “Alternate security” means an irrevocable bank letter of credit, certificate of deposit, cash bond or
other type of asset or security of value equal to or exceeding the amount of retained
funds. “Alternate security” shall not include a performance bond or a payment bond.
(b) “Construction” means furnishing labor, equipment, material or supplies used or consumed for the
design, construction, alteration, renovation, repair or maintenance of a building,
structure, road, bridge, water line, sewer line, oil line, gas line, appurtenance
or other improvement to real property, including any moving, demolition or excavation.
(c) “Contract” means a contract or agreement concerning construction made and entered into by and
between an owner and a contractor, a contractor and a subcontractor or a subcontractor
and another subcontractor.
(d) “Contractor” means a person performing construction and having a contract with an owner of the
real property or with a trustee, agent or spouse of an owner.
(e) “Owner” means a person who holds an ownership interest in real property.
(f) “Person” means an individual, corporation, estate, trust, partnership, limited liability
company, association, joint venture or any other legal entity.
(g) “Retainage” or “retention” means money earned by a contractor or subcontractor but withheld to ensure proper
performance by the contractor or subcontractor.
(h) “Subcontractor” means any person performing construction covered by a contract between an owner
and a contractor but not having a contract with the owner.
(i) “Substantial completion” means the stage of a construction project where the project, or a designated portion
thereof, is sufficiently complete in accordance with the contract, so that portion
thereof can be used for its intended purpose.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.