Senate File 574 - Reprinted SENATE FILE 574 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SF 431) (As Amended and Passed by the Senate March 25, 2025 ) A BILL FOR An Act relating to retention of fees for public improvement 1 contracts. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 574 (2) 91 sc/js/mb
S.F. 574 Section 1. Section 573.12, subsection 1, paragraphs a and b, 1 Code 2025, are amended to read as follows: 2 a. Payments made under contracts for the construction of 3 public improvements, unless provided otherwise by law, shall 4 be made on the basis of monthly estimates of labor performed 5 and material delivered, as determined by the project architect 6 or engineer. The public corporation shall retain from each 7 monthly payment not more than five three percent of that amount 8 which that is determined to be due according to the estimate 9 of the architect or engineer. 10 b. The contractor may retain from each payment to a 11 subcontractor not more than the lesser of five three percent 12 or the amount specified in the contract between the contractor 13 and the subcontractor. 14 Sec. 2. Section 573.13, Code 2025, is amended to read as 15 follows: 16 573.13 Inviolability and disposition of fund. 17 A public corporation shall not be permitted to plead 18 noncompliance with section 573.12 and the retained percentage 19 of the contract price, which in no case shall be more than five 20 three percent, constitutes a fund for the payment of claims 21 for materials furnished and labor performed on the improvement 22 and shall be held and disposed of by the public corporation as 23 provided in this chapter . 24 -1- SF 574 (2) 91 sc/js/mb 1/ 1