SENATE FLOOR VERSION - SB739 SFLR Page 1
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SENATE FLOOR VERSION
February 11, 2025
SENATE BILL NO. 739 By: Stewart
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 rel ates 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, Sect ion 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 a t 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.
SENATE FLOOR VERSION - SB739 SFLR Page 2
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B. The Department of Transportation or the Oklahoma Turnpike
Authority shall not withhold retainage on public cons truction
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 contracts or subcontracts subject to a bond
shall not withhold retainage.
SECTION 2. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON LOCAL AND COUNTY GOVERNMENT
February 11, 2025 - DO PASS