Home/Bills/HB 568Ohio · 136th General Assembly (2025–2026)

House BillIntroduced

HB 568: Limit retainage in certain private construction projects

Ohio · House · 136th General Assembly (2025–2026) · last verified September 24, 2026

What HB 568 does, verified September 24, 2026

This bill limits the retainage in certain private construction projects. Retainage is the amount withheld from a contractor's payment as a guarantee that they will complete the work as agreed upon. The bill applies to contracts with an expected value of over one million dollars entered into on or after the bill's effective date. It prohibits withholding retainage in excess of five percent of the contract's expected value. However, retainage is still allowed if it is necessary to cover a good faith claim directly related to the work performed.

Bill journey

1IntroducedCurrent

2In CommitteePending

3First Chamber FloorPending

4Second ChamberPending

5GovernorPending

6ChapteredPending

Last action: Referred to committee: Small Business (2025-11-05)Alert me

Author and sponsors

Rep. Ty MathewsAuthor · Ohio House of Representatives

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Coauthors

Tex FischerThomas HallMark JohnsonKevin Miller

Recent actions2 total · showing 2

Nov. 05, 2025	Referred to committee: Small Business
Nov. 04, 2025	Introduced

Latest bill textIntroduced version, November 4, 2025 · 439 words

As Introduced

136th General Assembly

Regular Session

H. B. No. 568

2025-2026

Representatives Mathews, T., Santucci
Cosponsors: Representatives Johnson, Fischer, Miller, K., Hall, T.

To enact section 4113.63 of the Revised Code to limit retainage in certain private construction projects.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 4113.63 of the Revised Code be enacted to read as follows:

1Sec. 4113.63. (A) As used in this section:

2(1) "Contractor," "lower tier material supplier," and

3"lower tier subcontractor" have the same meanings as in section

44113.61 of the Revised Code.

5(2) "Material supplier" and "subcontractor" have the same

6meanings as in section 1311.01 of the Revised Code.

7(3) "Owner" means a person who is not a public authority

8and relates to all the interests either legal or equitable that

9the person may have in the real estate upon which improvements

10are made, including interests held by any person under contracts

11of purchase, whether in writing or otherwise.

12(4) "Private project" means construction, alteration,

13erection, improvement, demolition, removal, digging, or drilling

14any part of a structure or improvement, directly or indirectly, .....

15under a contract with an owner. "Private project" includes work

16or labor performed, or materials furnished, under a contract

17with an owner, contractor, subcontractor, material supplier,

18lower tier subcontractor, or lower tier material supplier, so .....

19long as the owner of the structure or improvement on which the .....

20work or labor is performed, or the materials are used, is not a .....

21public authority.

22(5) "Public authority" has the same meaning as in section .....

231311.25 of the Revised Code.

24(B) Notwithstanding any provision of section 4113.61 of .....

25the Revised Code to the contrary, no construction contract or .....

26subcontract for a private project with an expected value of .....

27greater than one million dollars that is entered into on or .....

28after the effective date of this section shall include any .....

29provision that requires or permits the withholding of retainage .....

30in an amount greater than five per cent of the expected value of .....

31the contract or subcontract.

32(C) Nothing in this section shall be construed to require .....

33payment of a retainage where there is a good faith claim .....

34directly related to the work or labor performed, or the .....

35materials furnished, by the contractor, subcontractor, material .....

36supplier, lower tier subcontractor, or lower tier material .....

37supplier.

Text of HB 568 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions