VirginiaSB1652026 Regular SessionSenateWALLET

Contracts; retainage bonds permitted in construction contracts, effective clause.

Sponsored By: Jeremy S. McPike (Democratic)

Became Law

Summary

Contracts; retainage bonds permitted in construction contracts. Allows, in any construction contract between an owner and a general contractor or between a general contractor and a subcontractor, such contractor or subcontractor to tender a retainage bond, defined in the bill, as a substitute for retainage withheld as security in such contracts. The provisions of the bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Retainage bonds speed pay to contractors

The law lets contractors use a retainage bond instead of having money withheld. The bond must name the owner, match the retainage amount, and come from a surety licensed in Virginia. If the contractor is not in default, the owner must pay withheld retainage within five business days, or stop withholding up to the bond amount. Subcontractors can give a retainage bond to the contractor, who must pass it to the owner and pay the sub for completed work only. Any interest or income earned on the retainage bond belongs to the contractor or subcontractor who tendered it. These rules do not take effect unless the General Assembly reenacts them in 2027.

Retainage bond rules need 2027 reenactment

These retainage-bond changes do not take effect unless the General Assembly reenacts them in its 2027 session. Until then, current retainage practices stay the same. Plan for no change unless lawmakers act in 2027.

Sponsors & Cosponsors

Sponsor

  • Jeremy S. McPike

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 220 • No: 0

House vote 3/3/2026

Passed House Block Vote

Yes: 97 • No: 0

House vote 2/26/2026

Reported from General Laws

Yes: 21 • No: 0

House vote 2/24/2026

Subcommittee recommends reporting

Yes: 10 • No: 0

Senate vote 2/3/2026

Read third time and passed Senate Block Vote

Yes: 39 • No: 0

Senate vote 2/2/2026

General Laws and Technology Amendment agreed to

Yes: 0 • No: 0

Senate vote 1/30/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 38 • No: 0

Senate vote 1/30/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 1/28/2026

Reported from General Laws and Technology with amendment

Yes: 15 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0485)

    4/8/2026Governor
  2. Approved by Governor-Chapter485 (Effective -see bill)

    4/8/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  5. Bill text as passed Senate and House (SB165ER)

    3/9/2026Senate
  6. Enrolled

    3/9/2026Senate
  7. Signed by President

    3/9/2026Senate
  8. Signed by Speaker

    3/9/2026House
  9. Passed House Block Vote (97-Y 0-N 0-A)

    3/3/2026House
  10. Read third time

    3/3/2026House
  11. Read second time

    3/2/2026House
  12. Reported from General Laws (21-Y 0-N)

    2/26/2026House
  13. Subcommittee recommends reporting (10-Y 0-N)

    2/24/2026House
  14. Assigned HGL sub: Procurement/Open Government

    2/23/2026House
  15. Read first time

    2/6/2026House
  16. Referred to Committee on General Laws

    2/6/2026House
  17. Placed on Calendar

    2/6/2026House
  18. Read third time and passed Senate Block Vote (39-Y 0-N 0-A)

    2/3/2026Senate
  19. General Laws and Technology Amendment agreed to

    2/2/2026Senate
  20. Engrossed by Senate as amended Block Vote (Voice Vote)

    2/2/2026Senate
  21. Read second time

    2/2/2026Senate
  22. Passed by for the day Block Vote (Voice Vote)

    1/30/2026Senate
  23. Constitutional reading dispensed Block Vote (on 1st reading) (38-Y 0-N 0-A)

    1/30/2026Senate
  24. Rules suspended

    1/30/2026Senate
  25. Reported from General Laws and Technology with amendment (15-Y 0-N)

    1/28/2026Senate

Bill Text

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