Subdivision 1. Contractor's option. At the option of the contractor, retainage shall be paid to the contractor in accordance with this section.
Subd. 2. Security. The contractor may deposit bonds or securities with the public contracting agency or in any bank or trust company to be held in lieu of cash retainage for the benefit of the public contracting agency. In that event the public agency shall reduce the retainage in an amount equal to the value of the bonds and securities and pay the amount of the reduction to the contractor. Interest on the bonds or securities shall be payable to the contractor as it accrues.
Subd. 3. Approval required. Bonds and securities deposited or acquired in lieu of retainage, as permitted by subdivision 2, shall be of a character approved by the commissioner of management and budget, including but not limited to:
(1) bills, certificates, notes or bonds of the United States;
(2) other obligations of the United States or its agencies;
(3) obligations of any corporation wholly owned by the federal government; or
(4) indebtedness of the Federal National Mortgage Association.
Subd. 4. Recovery of additional costs. If the public agency incurs additional costs as a result of the exercise of the option described in this section, the agency may recover the costs from the contractor by reducing the final payment due under the contract. As work on the contract progresses, the agency shall, upon demand, inform the contractor of all accrued costs.
1980 c 464 s 3; 2003 c 112 art 2 s 50; 2009 c 101 art 2 s 109
Structure Minnesota Statutes
Chapters 14 - 15A — State Agencies
Chapter 15 — State Agencies In General
Section 15.001 — Application Of Laws 2005, Chapter 56, Terminology Changes.
Section 15.01 — Departments Of The State.
Section 15.012 — State Agencies; Designation By Type.
Section 15.014 — Advisory Task Forces.
Section 15.0145 — Ethnic Councils.
Section 15.039 — Effect Of Transfer Of Powers Among Agencies.
Section 15.0395 — Interagency Agreements And Intra-agency Transfers.
Section 15.053 — Use Of The National Guard Education Center At Camp Ripley.
Section 15.054 — Sale Or Purchase Of State Property; Penalty.
Section 15.057 — Publicity Representatives.
Section 15.061 — Professional Or Technical Services.
Section 15.063 — Biennial Reports; Submission.
Section 15.066 — Confirmation Of Appointments.
Section 15.08 — Commissioners Of Management And Budget And Administration; Access To Records.
Section 15.082 — Obligations Of Public Corporations.
Section 15.10 — Records Delivered To Department Heads.
Section 15.16 — Transfer Of Lands Between Departments.
Section 15.161 — Acceptance Of Federal Lands Or Buildings; Consultation With Legislative Committees.
Section 15.17 — Official Records.
Section 15.18 — Distribution Of Publications.
Section 15.185 — Mailing Lists.
Section 15.191 — Imprest Cash Funds.
Section 15.31 — State Employees, Liability Insurance, Payment Of Premiums.
Section 15.38 — Noninsurance Of State Property; Exceptions.
Section 15.39 — Employment And Economic Development Department Buildings.
Section 15.40 — Lack Of Care In Keeping State Property Safe From Fire Loss, Nonfeasance In Office.
Section 15.41 — Construction Permits, Requisites.
Section 15.411 — Public Works Contracts; No Damages For Delay Clauses.
Section 15.415 — Corrections In Transactions, Waiver.
Section 15.43 — Acceptance Of Advantage By State Employee; Penalty.
Section 15.435 — Airline Travel Credit.
Section 15.44 — Aids For Persons With Disabilities At State Meetings.
Section 15.441 — Communications Services.
Section 15.60 — Public Safety Officers; American Flag.
Section 15.61 — Employment Of Unemployed And Underemployed Persons.
Section 15.62 — Athletic Leave Of Absence.
Section 15.71 — Public Contracts; Definitions.
Section 15.72 — Progress Payments On Public Contracts; Retainage.
Section 15.73 — Alternative Form Of Retainage.
Section 15.74 — Exceptions To Application.
Section 15.75 — Contracts With Regional Organizations.
Section 15.85 — Discipline For Racial Harassment.
Section 15.86 — State Agency Actions.
Section 15.87 — Victims Of Violence.
Section 15.97 — Information And Telecommunications Institute.
Section 15.98 — Indoor Ice Facilities.
Section 15.985 — Advisory Inspections.
Section 15.0575 — Administrative Boards And Agencies.
Section 15.058 — Licensing Board Members, Compensation, Terms, Removal, Reports.
Section 15.059 — Advisory Councils And Committees.
Section 15.0591 — Representative Of Older Population.
Section 15.0593 — Agencies Created By Executive Order.
Section 15.0594 — Commissioner's Approval Required.
Section 15.0595 — Compensation And Per Diem; Source Of Funds.
Section 15.0596 — Additional Compensation From Contingent Fund Prohibited.
Section 15.0597 — Appointments To Multimember Agencies.
Section 15.0598 — Exceptions To Open Appointments.
Section 15.0599 — Registration Of Multimember Agencies.
Section 15.06 — Appointment Of Department Heads; Terms; Deputies.
Section 15.46 — Preventive Health Services For Public Employees.
Section 15.472 — Fees And Expenses; Civil Action Or Contested Case Proceeding Involving State.
Section 15.473 — Payment Of Costs And Fees.
Section 15.474 — Procedure For Award Of Fees; Contested Case.
Section 15.51 — Declaration Of Policy.
Section 15.53 — Authority To Interchange Employees.
Section 15.54 — Status Of Employees Of This State.
Section 15.55 — Travel Expenses Of Employees Of This State.
Section 15.56 — Status Of Employees Of Other Governments.
Section 15.57 — Travel Expenses Of Employees Of Other Governments.
Section 15.58 — Agreements Between Federal And Receiving Agencies.
Section 15.59 — Employee Interchange Between State And Private Industry.
Section 15.99 — Time Deadline For Agency Action.
Section 15.991 — Customer Service.