OK
Oklahoma Senate Bill SB1520

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1520 Compare Versions

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4-
5-An Act
6-ENROLLED SENATE
7-BILL NO. 1520 By: Murdock of the Senate
28+ENGROSSED HOUSE AMENDME NT
29+ TO
30+ENGROSSED SENATE BILL NO . 1520 By: Murdock of the Senate
831
932 and
1033
1134 West (Kevin) of the House
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40+An Act relating to public buildings; amending 61 O.S.
41+2021, Section 226, which relates to retainage
42+provisions in certain contracts; specifying the
43+retainage amount for specific contracts; and
44+providing an effective date.
1745
18-An Act relating to public buildings and public works;
19-amending 61 O.S. 2021, Sections 113.1 and 226, which
20-relate to the Public Competitive Biddin g Act of 1974;
21-providing for partial payment; authorizing reduction
22-of certain retainage; and providing an effective
23-date.
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48+AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
49+and insert:
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54+"An Act relating to public buildings and public
55+works; amending 61 O.S. 2021, Sections 113.1 and
56+226, which relate to the Public Competitive Bidding
57+Act of 1974; providing for partial payment;
58+authorizing reduction of certain retainage; and
59+providing an effective date.
2860
29-SUBJECT: Public buildings and public works
61+
62+
3063
3164 BE IT ENACTED BY THE PEOPLE OF THE STA TE OF OKLAHOMA:
32-
3365 SECTION 1. AMENDATORY 61 O.S. 2021, Section 113.1, is
3466 amended to read as follows:
35-
36-Section 113.1. A. A public constru ction contract shall provide
67+Section 113.1 A. A public constru ction contract shall provide
3768 for partial payment based upon work completed. The contract shall
3869 provide that up to five percent (5%) of all partial payments made
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3996 shall be withheld as retainage. At any time the contractor has
4097 completed in excess of fifty p ercent (50%) of the total contract
4198 amount, the retainage shall be reduced to two and one-half percent
4299 (2.5%) of the amount earned to date once the public agency has
43100 determined that satisfactory progress is being made.
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45101 B. The Department of Transportation o r the Oklahoma Turnpike
46102 Authority shall not wit hhold retainage on public construction
47103 contracts awarded by the De partment or the Authority.
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49-ENR. S. B. NO. 1520 Page 2
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51104 C. The Department of Transportation shall not withhold
52105 retainage or require any bond on projects awarded to railroa ds on
53106 the railroad's privately owned or operate d rail property.
54-
55107 SECTION 2. AMENDATORY 6 1 O.S. 2021, Section 226, is
56108 amended to read as follo ws:
57-
58109 Section 226. A. A public construction contract may include a
59110 provision for the retai nage of a portion of payment due. Such
60111 retainage is not to exceed five percent (5%) of the amount of the
61112 payment due. If a construction contract is subject to a bon d
62113 pursuant to this title and when the work of the contractor has been
63114 determined by the ho lder to be at least fifty percent (50%)
64115 complete, and with respect to the balance of the work to be
65116 performed by the contractor, the retainage amount shall be two and
66117 one-half percent (2.5%) shall provide for partial payment based upon
67118 work completed. The contract shall provide that up to five percent
68119 (5%) of all partial payments made shall be withheld as retainage.
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69146 At any time the contractor has completed in excess of fifty percent
70147 (50%) of the total contract amount, the retainage shall be reduced
71148 to two and one-half percent (2.5%) of the amount earn ed to date once
72149 the owner or owner's duly authorized representativ e has determined
73150 that satisfactory progress is being made.
74-
75151 B. A subcontract shall include a provision for the retainage of
76152 a portion of payment due. Such retainage shall not exceed five
77153 percent (5%) of the amount of the payment due. If a construction
78154 subcontract is subject t o a bond pursuant to this title and when the
79155 work of the subcontractor has been determined by the holder to be at
80156 least fifty percent (50%) complete, and with respect t o the balance
81157 of the work to be performed by the subcontractor, th e retainage
82158 amount shall be two and one-half percent (2.5%) When the work of the
83159 subcontractor has been determined by the holder to be at least fifty
84160 percent (50%) complete, the retainage sh all be reduced to two and
85161 one-half percent (2.5%) of the original contract amount.
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87162 C. No later than twenty-one (21) calendar days after a
88163 certificate of substantial completion is issued for the project or
89164 separate usable phase of the project and upon adeq uate performance
90165 of the prime contractor and with approval of any applicable surety,
91166 retainage shall be released by the owner to the prime contractor
167+less an amount no greater than one hundred fifty percent (1 50%) of
168+the estimated costs to correct any inco mplete or defective work as
169+identified, itemized, and attached to the certificate of sub stantial
92170
93-ENR. S. B. NO. 1520 Page 3
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196+completion. All remai ning funds shall be released as each
197+deficiency is satisfactorily completed. The prime co ntractor shall
198+release within ten (10) calendar days of receipt the share of those
199+funds that have been withheld from other entities. All other
200+entities shall releas e within seven (7) calendar days of receipt the
201+share of those funds that have been withhe ld from other entities.
202+SECTION 3. This act shall become effective November 1, 2022."
203+Passed the House of Representatives the 27th day of April, 2022.
204+
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209+Presiding Officer of the House of
210+ Representatives
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213+Passed the Senate the ____ day of _______ ___, 2022.
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219+Presiding Officer of the Senate
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222+ENGR. S. B. NO. 1520 Page 1 1
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247+ENGROSSED SENATE
248+BILL NO. 1520 By: Murdock of the Senate
249+
250+ and
251+
252+ West (Kevin) of the House
253+
254+
255+
256+
257+An Act relating to public buildings; amending 61 O.S.
258+2021, Section 226, which relates to retainage
259+provisions in certain contracts; specifying the
260+retainage amount for specific contracts; and
261+providing an effective date.
262+
263+
264+
265+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
266+SECTION 4. AMENDATORY 61 O.S. 2021, Section 226, is
267+amended to read as follows:
268+Section 226. A. A construction contract may include a
269+provision for the retai nage of a portion of payment due. Such
270+retainage is not to exceed five percent (5%) of the amount of the
271+payment due. If a construction contract is subject t o a bond
272+pursuant to this titl e and when the work of the contractor has been
273+determined by the ho lder to be at least fifty percent (50%)
274+complete, and with respect to t he balance of the work to be
275+performed by the contractor, the retainage amount shall be two and
276+one-half percent (2.5%) of the original contract amount.
277+B. A subcontract shall include a provision for the retainage of
278+a portion of payment due. Such retain age shall not exceed five
279+percent (5%) of the amount of the payment due. If a construct ion
280+
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306+subcontract is subject to a bond pursuant to this title and when the
307+work of the subcontracto r has been determined by the holder to be at
308+least fifty percent (50%) complete, and with respect to the balance
309+of the work to be performed by the subcontract or, the retainage
310+amount shall be two and one-half percent (2.5%) of the original
311+subcontract amount.
312+C. No later than twenty -one (21) calendar days after a
313+certificate of substantial completion is issued for the project or
314+separate usable phase of the pr oject and upon adequate perfor mance
315+of the prime contractor and with approval of any applicable s urety,
316+retainage shall be released by the owner to the prime contractor
94317 less an amount no greater than one hundr ed fifty percent (150%) of
95318 the estimated costs to correct any incomplete or d efective work as
96319 identified, itemized, and attached to the certific ate of substantial
97320 completion. All remaining funds shall be released a s each
98321 deficiency is satisfactorily compl eted. The prime contractor shall
99322 release within ten (10) calendar days of re ceipt the share of those
100323 funds that have been withheld from other e ntities. All other
101324 entities shall release within seven (7) calendar da ys of receipt the
102325 share of those funds th at have been withheld from other entities.
326+SECTION 5. This act shall become effective November 1, 2022.
103327
104-SECTION 3. This act shall become effective November 1, 2022.
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108-Passed the Senate the 12th day of May, 2022.
353+Passed the Senate the 14th day of March, 2022.
109354
110355
111356
112357 Presiding Officer of the Senate
113358
114359
115-Passed the House of Representatives the 27th day of April, 2022.
360+Passed the House of Representatives the ____ day of __________,
361+2022.
116362
117363
118364
119365 Presiding Officer of the House
120366 of Representatives
121367
122-OFFICE OF THE GOVERNOR
123-Received by the Office of the Governor this ____________________
124-day of _________________ __, 20_______, at _______ o'clock _______ M.
125-By: _______________________________ __
126-Approved by the Governor of the State of Oklahoma this ___ ______
127-day of _________________ __, 20_______, at _______ o'clock _______ M.
128368
129- _________________________________
130- Governor of the State of Oklahoma
131-
132-
133-OFFICE OF THE SECRETARY OF STATE
134-Received by the Office of the Secretary of State this _______ ___
135-day of __________________, 20 _______, at _______ o'clock _______ M.
136-By: _________________________________