Retainage
State statute requires contracts under $750,000 to hold 10% retainage until project is substantially complete. The Engineer is the only one who can approve reducing the retainage percentage.
How Percentage Complete Is Figured#
The percentage completed is figured on the actual work that is completed, beforematerials in storage have been figured. We should use the total of ''Total Earned - Regular Work YTD" figure to find thepercentage complete. Take this figure and divide it by the total contract price. The Contract Price should include all approved change orders.
Example:
Final Submittal Procedure#
After Completion of the project and before the final payment contractor must submit:
- A release form the Surety
- A certification by the Contractor that all bills for materials, wages due for labor and other costs of the work have been paid in full(Certification of payment of costs);
- A notarized affidavit by the Contractor that the work has been completed in full compliance with the contract, plans and specifications (Affidavit on compliance with plans and specifications).
The Engineer shall process a final estimate of the work done under this Contract and the value thereof. Such final estimate shall be submitted to the Board within ten (10) days after the preparation has been authorized as aforesaid and the Board shall within forty-five (45) days after said final estimate is made and certified, pay the entire sum so found to be due hereunder, after deducting all amount to be kept and retained under any provisions of this contract and securing any required approvals from Federal and State agencies.