Chapter 04-022

A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- CONTRACTORS' BONDS

Introduced By: Representatives Corvese, Laroche, T Brien, San Bento, and Almeida

Date Introduced: January 08, 2004

It is enacted by the General Assembly as follows:

SECTION 1. Section 37-12-10 of the General Laws in Chapter 37-12 entitled

"Contractors' Bonds" is hereby amended to read as follows:

37-12-10. Retainers relating to contracts for public works, sewer, or water main

construction. -- (a) Upon substantial completion of the work required by a contract aggregating

in amount less than five hundred thousand dollars ($500,000) with any municipality, or any

agency or political subdivision thereof, for the construction, reconstruction, alteration,

remodeling, repair, or improvement of sewers and water mains, or any public works project

defined in section 37-13-1, the awarding authority may deduct from its payment a retention to

secure satisfactory performance of the contractual work not exceeding five percent (5%) of the

contract price unless otherwise agreed to by the parties. Upon substantial completion of the work

required by a contract aggregating in an amount of five hundred thousand dollars ($500,000) or

greater with any municipality, or any agency or political subdivision thereof, for the construction,

reconstruction, alteration, remodeling, repair, or improvement of sewers and water mains, or any

public works project defined in section 37-13-1, the awarding authority may deduct from its

payment a retention to secure satisfactory performance of the contractual work not exceeding five

percent (5%) of the contract price. In the case of periodic payments with respect to contracts less

than the aggregate amount of five hundred thousand dollars ($500,000), the awarding authority

may deduct from its payment a retention to secure satisfactory performance of the contractual

work not exceeding five percent (5%) of the approved amount of any periodic payment unless

otherwise agreed to by the parties. In the case of periodic payments with respect to contracts in

the aggregate amount of five hundred thousand dollars ($500,000) or greater, the awarding

authority may deduct from its payment a retention to secure satisfactory performance of the

contractual work not exceeding five percent (5%) of the approved amount of any periodic

payment.

(b) The retainage ~~five percent (5%) retained~~ shall be paid to any contractor or

subcontractor within ninety (90) days of the date the work is accepted by the awarding authority

unless a dispute exists with respect to the work. If payment is not made within ninety (90) days

for any reason ~~including~~ other than a dispute, which, if resolved and it is not the fault of the

contractor, ~~then the 10% will not be assessed unless the dispute is resolved to have been the fault~~

~~of the contractor or subcontractor,~~ interest shall be assessed at the rate of ten percent (10%) per

annum on all money which is to be paid to the contractor or subcontractor.

subcontractor within ninety (90) days of the date his or her work is completed and accepted by

the awarding authority. If payment is not made, interest shall be assessed at the rate of ten percent

(10%) per annum.

(d) There shall also be deducted and retained from the contract price an additional sum

sufficient to pay the estimated cost of municipal police traffic control on any public works

project. Municipalities shall directly pay the officers working traffic details and shall bill and be

reimbursed by the withholding authority for which the contract is being performed every thirty

(30) days until the project is complete.

SECTION 2. This act shall take effect upon passage.

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LC00253/SUB A/2

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