Chapter 276
2010 -- S 2751
Enacted 06/25/10
A N A C T
RELATING TO
PUBLIC PROPERTY AND WORKS -- CONTRACTORS' BONDS
Introduced By: Senator Walter S. Felag
Date Introduced: March 25, 2010
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 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 other than a dispute,
which, if resolved and it is not the fault of the
contractor, 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.
(c) The retainage shall be paid to any contractor or 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.
(e) Notwithstanding
the foregoing, with respect to projects located within the town of
reasonably sufficient to pay the estimated cost of municipal
police traffic control. The
withholding authority shall pay to the town of
demand the actual costs of police traffic control associated
with said project on an ongoing basis.
SECTION 2. This act shall take effect upon passage.
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LC02111
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