ENROLLED SENATE
BILL NO. 1520 By: Murdock
of the Senate
and
West
(Kevin) of the House
An Act relating to public buildings and public works; amending
61 O.S. 2021, Sections 113.1 and 226, which relate to the Public Competitive
Bidding Act of 1974; providing for partial payment; authorizing reduction of
certain retainage; and providing an effective date.
SUBJECT: Public buildings and public works
BE IT
ENACTED BY THE PEOPLE OF THE STATE OF
SECTION 1.
AMENDATORY 61 O.S. 2021,
Section 113.1, is amended to read as follows:
Section 113.1. A. A public construction contract shall provide
for partial payment based upon work completed.
The contract shall provide that up to five percent (5%) of all partial
payments made shall be withheld as retainage.
At any time the contractor has completed in excess of fifty percent
(50%) of the total contract amount, the retainage shall be reduced to two and
one-half percent (2.5%) of the amount earned to date once the public agency has
determined that satisfactory progress is being made.
B. The Department of
Transportation or the Oklahoma Turnpike Authority shall not withhold retainage
on public construction contracts awarded by the Department or the Authority.
C. The Department of
Transportation shall not withhold retainage or require any bond on projects
awarded to railroads on the railroad's privately owned or operated rail
property.
SECTION 2.
AMENDATORY 61 O.S. 2021,
Section 226, is amended to read as follows:
Section 226. A. A public construction contract may
include a provision for the retainage of a portion of payment due. Such retainage is not to exceed five percent
(5%) of the amount of the payment due.
If a construction contract is subject to a bond pursuant to this title
and when the work of the contractor has been determined by the holder to be at
least fifty percent (50%) complete, and with respect to the balance of the work
to be performed by the contractor, the retainage amount shall be two and
one-half percent (2.5%) shall provide for partial payment based upon
work completed. The contract shall
provide that up to five percent (5%) of all partial payments made shall be
withheld as retainage. At any time the
contractor has completed in excess of fifty percent (50%) of the total contract
amount, the retainage shall be reduced to two and one-half percent (2.5%) of
the amount earned to date once the owner or owner's duly authorized
representative has determined that satisfactory progress is being made.
B. A subcontract shall
include a provision for the retainage of a portion of payment due. Such retainage shall not exceed five percent
(5%) of the amount of the payment due. If
a construction subcontract is subject to a bond pursuant to this title and when
the work of the subcontractor has been determined by the holder to be at least
fifty percent (50%) complete, and with respect to the balance of the work to be
performed by the subcontractor, the retainage amount shall be two and one-half
percent (2.5%) When the work of the subcontractor has been determined by
the holder to be at least fifty percent (50%) complete, the retainage shall be
reduced to two and one-half percent (2.5%) of the original contract amount.
C.
No later than twenty-one (21) calendar days after a certificate of
substantial completion is issued for the project or separate usable phase of
the project and upon adequate performance of the prime contractor and with
approval of any applicable surety, retainage shall be released by the owner to
the prime contractor less an amount no greater than one hundred fifty percent
(150%) of the estimated costs to correct any incomplete or defective work as
identified, itemized, and attached to the certificate of substantial
completion. All remaining funds shall be
released as each deficiency is satisfactorily completed. The prime contractor shall release within ten
(10) calendar days of receipt the share of those funds that have been withheld
from other entities. All other entities
shall release within seven (7) calendar days of receipt the share of those
funds that have been withheld from other entities.
SECTION 3.
This act shall become effective November 1, 2022.
Passed the Senate the 12th day of May, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the 27th day of April, 2022.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received
by the Office of the Governor this ____________________ day of
___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved
by the Governor of the State of Oklahoma this _________ day of
___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received
by the Office of the Secretary of State this __________ day of
__________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________