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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 739 By: Stewart
AS INTRODUCED
An Act relating to construction contracts ; amending
61 O.S. 2021, Section 113.1, as amended by Section
24, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2024,
Section 113.1), which relates to retainage;
prohibiting certain entities from withholding
retainage for certain 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 113.1, as
amended by Section 24, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2024,
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 until the project is fifty percent
(50%) complete as determined by the awarding agency. When the
awarding public agency determines that the project is at least fifty
percent (50%) complete, the retainage amount shall be two and one -
half percent (2.5%) with respect to the balance of the work.
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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.
D. Construction contract s or subcontracts subject to a bond
shall not withhold retainage.
SECTION 2. This act shall become effective November 1, 2025.
60-1-1137 CAD 1/15/2025 12:59:35 PM