STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

SENATE BILL 707	By:	Jolley

AS INTRODUCED

An Act relating to the Public Competitive Bidding Act of 1974; amending 61 O.S. 2001, Section 113.1, as amended by Section 19, Chapter 271, O.S.L. 2006 (61 O.S. Supp. 2010, Section 113.1), which relates to partial payment and retainage; modifying percentage of retainage; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     61 O.S. 2001, Section 113.1, as amended by Section 19, Chapter 271, O.S.L. 2006 (61 O.S. Supp. 2010, 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 ten percent (10%) 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 five percent (5%) of the amount earned to date if the owner or owner's duly authorized representative has determined that satisfactory progress is being made, and upon approval by the surety.
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.
SECTION 2.  This act shall become effective November 1, 2011.

53-1-1172	JT	1/19/2011 6:59:12 PM