15.72 PROGRESS PAYMENTS ON PUBLIC CONTRACTS; RETAINAGE.
Subdivision 1.
Monthly payments. Unless the terms of the contract provide otherwise,
a public contracting agency shall make progress payments on a public contract for a public
improvement monthly as the work progresses. Payments shall be based upon estimates of work
completed as approved by the public contracting agency. A progress payment shall not be
considered acceptance or approval of any work or waiver of any defects therein.
Subd. 2.
Retainage. A public contracting agency may reserve as retainage from any progress
payment on a public contract for a public improvement an amount not to exceed five percent of the
payment. A public agency may reduce the amount of the retainage and may eliminate retainage on
any monthly contract payment if, in the agency's opinion, the work is progressing satisfactorily.
History: 1980 c 464 s 2