An Act
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 Biddin g 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 STA TE OF OKLAHOMA:
SECTION 1. AMENDATORY 61 O.S. 2021, Section 113.1, is
amended to read as follows:
Section 113.1. A. A public constru ction 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 p ercent (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 o r the Oklahoma Turnpike
Authority shall not wit hhold retainage on public construction
contracts awarded by the De partment or the Authority.
ENR. S. B. NO. 1520 Page 2
C. The Department of Transportation shall not withhold
retainage or require any bond on projects awarded to railroa ds on
the railroad's privately owned or operate d rail property.
SECTION 2. AMENDATORY 6 1 O.S. 2021, Section 226, is
amended to read as follo ws:
Section 226. A. A public construction contract may include a
provision for the retai nage 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 bon d
pursuant to this title and when the work of the contractor has been
determined by the ho lder 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 earn ed to date once
the owner or owner's duly authorized representativ e 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 t o the balance
of the work to be performed by the subcontractor, th e 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 sh all 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 adeq uate performance
of the prime contractor and with approval of any applicable surety,
retainage shall be released by the owner to the prime contractor
ENR. S. B. NO. 1520 Page 3
less an amount no greater than one hundred fifty percent (1 50%) of
the estimated costs to correct any inco mplete or defective work as
identified, itemized, and attached to the certificate of substantial
completion. All remai ning funds shall be released as each
deficiency is satisfactorily completed. The prime co ntractor 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 releas e within seven (7) calendar days of receipt the
share of those funds that have been withhe ld from other entities.
SECTION 3. This act shall become effective November 1, 2022.
ENR. S. B. NO. 1520 Page 4
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: _________________________________