• It is not decided whether lien rights can be waived by contract before work is performed or if “pay-if-paid” clause are valid for waiving lien rights. Be cautions and review all contracts carefully but a “pay-if-paid” clause might be challenged successfully using the Prompt Payment Statute [10 M.R.S.A. §1111 et seq.].

Retainage Provisions

Public

• The public entity shall withhold 5 percent of the amount due to the contractor. However, upon substantial completion of the work, the state may reduce the retainage. The contractor may substitute securities in lieu of retainage. ME. REV. STAT. ANN. tit. 5, § 1746.

Private

• Contractors are required to pay subcontractors and suppliersthe full amount due within
  seven days after receipt of retainage. Contractors may withhold retainage from subcontractors
  and suppliers even in the absence of retainage being withheld from the contractor. ME. REV.
  STAT. ANN. tit. 10, § 1116.