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Retainage

In AIA document A201, remaining retainage is not due until the Contractor submits a number of items indemnifying the Owner against claims from subcontractors. If a Subcontractor refuses to furnish a release or waiver required by the Owner, what can the Contractor furnish to indemnify the Owner against the subcontractors lien?



Answer: The Contractor may furnish a bond satisfactory to the Owner. If after payments are made and the lien remains unsatisfied, the Contractor shall refund to the Owner the costs plus attorney's fees that the Owner may be compelled to pay to discharge the lien.

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