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. At any time the contractor has completed in excess of fifty percent (50%) of the total contract amount, the retainage shall be reduced to two and one-half percent (2.5%) of the amount earned to date once the owner or owner's duly authorized representative has determined that satisfactory progress is being made.
B. A subcontract shall include a provision for the retainage of a portion of payment due. Such retainage shall not exceed five percent (5%) of the amount of the payment due. When the work of the subcontractor has been determined by the holder to be at least fifty percent (50%) complete, the retainage shall be reduced to two and one-half percent (2.5%) of the original contract amount.
C. No later than twenty-one (21) calendar days after a certificate of substantial completion is issued for the project or separate usable phase of the project and upon adequate performance of the prime contractor and with approval of any applicable surety, retainage shall be released by the owner to the prime contractor less an amount no greater than one hundred fifty percent (150%) of the estimated costs to correct any incomplete or defective work as identified, itemized, and attached to the certificate of substantial completion. All remaining funds shall be released as each deficiency is satisfactorily completed. The prime contractor shall release within ten (10) calendar days of receipt the share of those funds that have been withheld from other entities. All other entities shall release within seven (7) calendar days of receipt the share of those funds that have been withheld from other entities.
Added by Laws 2004, c. 256, § 6, eff. Nov. 1, 2004. Amended by Laws 2005, c. 92, § 4, eff. Nov. 1, 2005. Renumbered from § 626 of Title 15 by Laws 2005, c. 92, § 6, eff. Nov. 1, 2005. Amended by Laws 2010, c. 207, § 1, emerg. eff. May 5, 2010; Laws 2019, c. 456, § 1, eff. Nov. 1, 2019; Laws 2022, c. 315, § 2, eff. Nov. 1, 2022.
Structure Oklahoma Statutes
Title 61. Public Buildings and Public Works
§61-1. Bond to be furnished on public works contracts.
§61-2. Filing of bond - Action on bond - Subcontractors.
§61-3. Working day for public employees.
§61-4. Public contracts made on basis of eight-hour day.
§61-5. Penalty for violating two preceding sections.
§61-6. Public buildings - Home products - When to use.
§61-12. Plans and specifications - Approval.
§61-17. Presumption as to consent to jurisdiction of Oklahoma courts.
§61-18. Liability of contractor after completion of contract work.
§61-19. Multi-year contracts for painting and other maintenance of water storage tanks.
§61-60. See the following versions:
§61-60v1. Mandatory consultant and construction contract forms - Exceptions.
§61-60v2. Mandatory consultant and construction contract forms - Exceptions.
§61-62. Construction managers and consultants - Registration and selection.
§61-62.1. Contracts to be in accordance with Public Building Construction and Planning Act.
§61-62.2. Contracts for minor services.
§61-63. Ownership and control of plans, etc.
§61-64. Misdemeanor offenses - Punishment.
§61-65. Application of act - Emergencies.
§61-81. Fair and Open Competition in Governmental Construction Act.
§61-83. Prohibited terms in bid specifications for public improvement projects.
§61-85. Prohibited terms in bid specifications for public improvement projects.
§61-103. Governing law - Solicitation and award of contracts.
§61-103.2. Political subdivision may appoint purchasing agent.
§61-103.4. School districts – Erection of building or making improvements on force account basis.
§61-103.7. Contracts related to fish and wildlife conservation.
§61-105. Contents of bid notices.
§61-106. Bidding documents to be on file.
§61-107. Check, bond or irrevocable letter of credit to accompany bid.
§61-108. Written statement under oath to accompany bid.
§61-111. Time for awarding of contract.
§61-112. Bids, contracts, bonds open for public inspection.
§61-113. Execution of contract.
§61-113.1. See the following versions:
§61-113.1v1. Partial payment - Retainage.
§61-113.1v2. Partial payment - Retainage.
§61-113.2. Withdrawal of retainage - Deposit of securities.
§61-114. Conflict of interest.
§61-115. Collusion among bidders or material suppliers.
§61-116. Disclosure of terms of bids - Public agency engineering estimates.
§61-117. Award to other than lowest bidder.
§61-118. Prequalification of bidders.
§61-119.1. Certain contract to be negotiated when no bid is received.
§61-120. Assignment of contracts.
§61-121. Change orders or addenda.
§61-122. Taxpayer suits to enjoin execution of unlawful contracts.
§61-123. Supervisor's certification to accompany invoices - Exception.
§61-125. Accounting procedure.
§61-126. Construction on force account basis.
§61-127. Contracts made by a public entity - Applicability.
§61-128. Builder’s risk insurance.
§61-131. Splitting of contracts - Punishment and fine.
§61-134. Insurance or bond to be secured from carrier licensed in Oklahoma.
§61-136. Conflicts with federal rules and regulations - Laws governing.
§61-137. Termination of certain unperformed contracts.
§61-139. Authority to enter into cooperative purchasing agreements.
§61-201. Short title – Public Facilities Act.
§61-202. See the following versions:
§61-204. Office of Management and Enterprise Services - Duties.
§61-207.2. Architects, engineers or land surveyors - Employment.
§61-208.1. Contracting for construction services - Fee.
§61-208.2. State Construction Revolving Fund.
§61-208.3. Exempted entities - Compliance with act.
§61-210. Model shared savings contract.
§61-211. Selection of equipment on life cycle cost analysis basis.
§61-213. Public building energy and environmental performance program.
§61-215. Short title - Public Construction Management Act for Political Subdivisions.
§61-217. Construction managers – Written contract required – Procedure for awarding work.
§61-223. Construction contracts - Progress payments - Reduction.
§61-224. Payment of subcontractor or sub-contractor or supplier - Time limit.
§61-225. Suspension or termination of construction contract - Payment.
§61-226. Retainage of portion of payment due - Release.
§61-308. Oil or gas lease of lands of public institutions.
§61-310. Oil and gas leases upon described state-owned lands.
§61-311. Jurisdiction over lands covered by lease.
§61-314. Use of other state-owned lands by lessees.
§61-316. Payment of proceeds into Maintenance of State Buildings Revolving Fund.
§61-317. Oil and gas or mineral leases of state lands other than Capitol lands and parkways.
§61-318. Lease of property formerly occupied by Russell Girls Home.
§61-319. Purpose or use for which leased.
§61-322. Easement and right-of-way grants - Exemptions.
§61-324. Director to take charge, manage and lease Capitol Building Lands.
§61-325. Inventory and appraisal - Sale.
§61-326. Disposition of proceeds - Leases for oil and gas purposes.
§61-327. Procedures for disposal or lease of certain state-owned real property.
§61-327.1. Written proposals for state-owned properties not subject to disposition.
§61-327.2. Proposals for investment real property.
§61-330.1. Recording fee for Office of Management and Enterprise Services.