Public school districts and other units of local government in Georgia now face new requirements for an important part of many construction contracts: retainage, or the amount the project owner can withhold from progress payments to ensure the job gets done.

The changes are the result of Georgia Senate Bill 438, which went into effect on July 1. The new law eliminates some confusion as to when a local government must stop or may restart withholding retainage—two areas that had previously led to disputes.