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SENATE FLOOR VERSION
March 3, 2022
SENATE BILL NO. 1520 By: Murdock of the Senate
and
West (Kevin) of the House
An Act relating to public buildings; amending 61 O.S.
2021, Section 226, which relates to retainage
provisions in certain contracts; specifying the
retainage amount for specific contracts; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 61 O.S. 2021, Section 226, is
amended to read as follows:
Section 226. A. A 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 t o 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 t he balance of the work to be
performed by the contractor, the retainage amount shall be two and
one-half percent (2.5%) of the original contract amount .
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B. A subcontract shall include a provision for the retainage of
a portion of payment due. Such retain age shall not exceed five
percent (5%) of the amount of the payment due. If a construct ion
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 subcontract or, the retainage
amount shall be two and one -half percent (2.5%) of the original
subcontract 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 pr oject 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 hundr ed fifty percent (150%) of
the estimated costs to correct any incomplete or defective wo rk as
identified, itemized, and attached to the certificate of substantial
completion. All remaining funds shall be released a s each
deficiency is satisfactorily compl eted. The prime contractor shall
release within ten (10) calendar days of receipt the s hare of those
funds that have been withheld from other entities. All other
entities shall release within seven (7) calendar da ys of receipt the
share of those funds th at have been withheld from other entities.
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SECTION 2. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
March 3, 2022 - DO PASS