103E.535 PARTIAL PAYMENT OF RETAINED CONTRACT AMOUNTS.
Subdivision 1. Petition for partial payment of retained value.
If a single contract exceeds
$50,000, and the contract, exclusive of materials furnished and not installed, is one-half or more
complete and the contractor is not in default, the contractor may file a verified petition with the
auditor stating these facts and requesting that an order be made to pay 40 percent of the retained
value of work and material.
Subd. 2. Notice of hearing.
When the petition is filed, the auditor shall set a time and
location for a hearing on the petition before the drainage authority. At least five days before the
date of hearing, the auditor shall give notice by mail of the date and location of hearing to the
engineer, the attorney for the petitioners, the surety of the contractor's bond, and auditors of
the affected counties.
Subd. 3. Hearing.
At the hearing the drainage authority shall hear all parties interested. If the
drainage authority determines that the facts in the petition are correct, the work has been performed
in a satisfactory manner, and a portion of the retained percentage may be released without
endangering the interests of affected counties, the drainage authority shall state the findings and
may order not more than 40 percent of the retained value of work and material to be paid.
History: 1990 c 391 art 5 s 72