Sec. 49-41b. Release of payments on construction projects.
Sec. 49-41b. Release of payments on construction projects. When any public
work is awarded by a contract for which a payment bond is required by section 49-41
and such contract contains a provision requiring the general or prime contractor under
such contract to furnish a performance bond in the full amount of the contract price, the
following shall apply:
(1) In the case of a contract advertised by the state Department of Public Works or
any other state agency, except as specified in subdivision (2) of this section, (A) the
awarding authority shall not withhold more than ten per cent from any periodic or final
payment which is otherwise properly due to the general or prime contractor under the
terms of such contract and (B) any such general or prime contractor shall not withhold
from any subcontractor more than (i) ten per cent from any periodic or final payment
which is otherwise due to the subcontractor or (ii) the amount withheld by the awarding
authority from such general or prime contractor under subparagraph (A) of this subdivision, whichever is less. Notwithstanding the provisions of this subdivision (1), the
awarding authority shall establish an early release program with respect to periodic
payments by general or prime contractors to subcontractors.
(2) In the case of a contract advertised by the state Department of Transportation,
(A) the department shall not withhold more than two and one-half per cent from any
periodic or final payment which is otherwise properly due to the general or prime contractor under the terms of such contract, and (B) any such general or prime contractor
shall not withhold more than two and one-half per cent from any periodic or final payment which is otherwise due to any subcontractor.
(3) If the awarding authority is a municipality, (A) it shall not withhold more than
five per cent from any periodic or final payment which is otherwise properly due to the
general or prime contractor under the terms of such contract, and (B) any such general
or prime contractor shall not withhold more than five per cent from any periodic or final
payment which is otherwise due to any subcontractor.
(P.A. 77-306; P.A. 87-575, S. 2; P.A. 96-235, S. 4, 19; P.A. 98-222, S. 8.)
History: P.A. 87-575 reduced, from 5% to 2.5%, the maximum amount of any payment which the state may withhold
under this section; P.A. 96-235 renumbered and relettered provisions of section, added new Subdiv. (1) re withholding of
payments under contracts advertised by state Department of Public Works between July 1, 1996, and June 30, 1999, and
applied provisions of Subdiv. (2) to contracts advertised by said department on or after July 1, 1999, or any case in which
awarding authority is any other state agency, effective June 6, 1996; P.A. 98-222 amended Subdiv. (1) by deleting time
period, adding provisions re "other state agency" and replacing "department" and "Commissioner of Public Works" with
"awarding authority", and amended Subdiv. (2) by replacing "Department of Public Works" with "Department of Transportation".
See chapter 60, part II (Sec. 4b-91 et seq.) re public building contracts.
Sec. 49-41a et seq., "prompt payment act" cited. 238 C. 293. Sec. 49-41 et seq. cited. 239 C. 708.