HF 2912

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/29/2018 09:26am

A bill for an act
relating to state government; requiring release of a retainage within a certain time
period; amending Minnesota Statutes 2016, section 15.72, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 15.72, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Release of retainage. new text end

new text begin (a) Upon substantial completion of a prime contractor's
scope of work, a public contracting agency must release the retainage or final payment
withheld from the prime contractor within 45 days.
new text end

new text begin (b) After substantial completion, a public contracting agency may withhold no more
than 150 percent of the value of incomplete or defective work. Any amounts withheld for
incomplete or defective work shall be paid within 45 days after the completion of the work.
new text end

new text begin (c) A public contracting agency may reduce the amount of retainage and may eliminate
retainage if, in the public contracting agency's opinion, the work is progressing satisfactorily.
new text end

new text begin (d) As used in this subdivision, "substantial completion" shall be determined as provided
in section 541.051, subdivision 1, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to agreements entered into on or after August
1, 2018.
new text end