§ 37-12-10 - Retainers relating to contracts for public works, sewer, or water main construction.
SECTION 37-12-10
§ 37-12-10 Retainers relating to contractsfor public works, sewer, or water main construction. – (a) Upon substantial completion of the work required by a contract aggregatingin amount less than five hundred thousand dollars ($500,000) with anymunicipality, or any agency or political subdivision thereof, for theconstruction, reconstruction, alteration,remodeling, repair, or improvement ofsewers and water mains, or any public works project defined in § 37-13-1,the awarding authority may deduct from its payment a retention to securesatisfactory performance of the contractual work not exceeding five percent(5%) of the contract price unless otherwise agreed to by the parties. Uponsubstantial completion of the work required by a contract aggregating in anamount of five hundred thousand dollars ($500,000) or greater with anymunicipality, or any agency or political subdivision thereof, for theconstruction, reconstruction, alteration, remodeling, repair, or improvement ofsewers and water mains, or any public works project defined in § 37-13-1,the awarding authority may deduct from its payment a retention to securesatisfactory performance of the contractual work not exceeding five percent(5%) of the contract price. In the case of periodic payments with respect tocontracts less than the aggregate amount of five hundred thousand dollars($500,000), the awarding authority may deduct from its payment a retention tosecure satisfactory performance of the contractual work not exceeding fivepercent (5%) of the approved amount of any periodic payment unless otherwiseagreed to by the parties. In the case of periodic payments with respect tocontracts in the aggregate amount of five hundred thousand dollars ($500,000)or greater, the awarding authority may deduct from its payment a retention tosecure satisfactory performance of the contractual work not exceeding fivepercent (5%) of the approved amount of any periodic payment.
(b) The retainage shall be paid to any contractor orsubcontractor within ninety (90) days of the date the work is accepted by theawarding authority unless a dispute exists with respect to the work. If paymentis not made within ninety (90) days for any reason other than a dispute, which,if resolved and it is not the fault of the contractor, interest shall beassessed at the rate of ten percent (10%) per annum on all money which is to bepaid to the contractor or subcontractor.
(c) The retainage shall be paid to any contractor orsubcontractor within ninety (90) days of the date his or her work is completedand accepted by the awarding authority. If payment is not made, interest shallbe assessed at the rate of ten percent (10%) per annum.
(d) There shall also be deducted and retained from thecontract price an additional sum sufficient to pay the estimated cost ofmunicipal police traffic control on any public works project. Municipalitiesshall directly pay the officers working traffic details and shall bill and bereimbursed by the withholding authority for which the contract is beingperformed every thirty (30) days until the project is complete.