The proposed bill, H.B. No. 2025-2026, seeks to enact a new section, 4113.63, of the Revised Code in Ohio, which aims to limit the amount of retainage that can be withheld in private construction projects. Specifically, it stipulates that for any construction contract or subcontract related to a private project with an expected value exceeding one million dollars, no more than five percent of the contract value can be withheld as retainage. This provision is intended to provide financial relief to contractors and subcontractors by ensuring that they receive a larger portion of their payments in a timely manner.

Additionally, the bill defines key terms relevant to the construction industry, such as "contractor," "owner," and "private project," and clarifies that the withholding of retainage is not required if there is a good faith claim related to the work performed or materials supplied. This legislative change is designed to enhance the financial stability of those involved in private construction projects by limiting excessive retainage practices that can hinder cash flow and project completion.