Bill > SB739

This bill modifies Oklahoma's existing law regarding retainage (a percentage of payment withheld during construction projects) by adding a new provision that prohibits withholding retainage for construction contracts or subcontracts that are subject to a bond. Currently, the law allows public construction contracts to withhold up to 5% of partial payments as retainage until a project is 50% complete, after which the retainage amount reduces to 2.5%. The bill also maintains existing exemptions for the Department of Transportation and Oklahoma Turnpike Authority, which are already prohibited from withholding retainage on their public construction contracts, and for railroad projects on privately owned rail property. By preventing retainage withholding on bonded contracts, the bill aims to potentially improve cash flow and reduce financial burdens for contractors who have provided a bond as a guarantee of project completion. The new provisions will become effective on November 1, 2025, giving entities time to adapt to the changes in retainage requirements.

Government Affairs

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb739&Session=2600