Retainage on Public Works
SUBTITLE STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT
Chapter 2251. PAYMENT FOR GOODS AND SERVICES
Chapter 2252. CONTRACTS WITH GOVERNMENTAL ENTITY
Chapter 2253. PUBLIC WORK PERFORMANCE AND PAYMENT BONDS
Chapter 2254. PROFESSIONAL AND CONSULTING SERVICES
Chapter 2255. PRIVATE DONORS OR ORGANIZATIONS Chapter 2-956. PUBLIC FUNDS INVESTMENT Chapter 225T. COLLATERAL FOR PUBLIC FUNDS
[Chapters 2258 to 2300 reserved for expansion]
SUBCHAPTER B. INTEREST ON RETAINED
PUBLIC WORKS CONTRACT PAYMENTS
Sec. 2252-031. DEFINITIONS. In this subchapter:
(1) Governmental entity’ means:
(A) the state, a County, or a municipality; a department board, or agency of the state, a county, or a municipality;
(C) a school district or a subdivision of a school district; or
(D) any other governmental or quasi-governmental authority authorized by statute to make a public works contract.
(2) “Prime contractor” means a person or persons, firm, or corporation contracting with a governmental entity for a public work.
(3) “Public works” includes the construction, alteration, or repair of a public building or the construction or completion of a public work.
(4). “Public works contract payment” means a payment by a governmental entity for the value of labor, material, machinery, fixtures, tools, power, water, fuel, or lubricants used or consumed, ordered and delivered for use or consumption, or specially fabricated for use or consumption but not yet delivered, in the direct performance of a public works contract.
(5) “Retainage” means the part of a public works contract payment withheld by a governmental entity to secure performance of the contract (V.A.C.S. Art. 6252-5b, Sec. (1.)
Sec. 2252.032. RETAINAGE. A governmental entity shall:
(1) deposit in an interest-bearing account the retainage of a public works contract that provides for retainage of more than five percent of the periodic contract payment; and
(2) pay the interest earned on the retainage to the prime contractor on completion of the contract. (V.A.C.S. Art. 6252-5b, Sec. 2.)
See. 2252.033. EXEMPTIONS. This chapter does not apply to:
(1) a public works contract executed before August 31, 1981,
(2) Public works contract in which the total contract price estimate at the time of execution of the contract is less than $400,000
(3) a public works contract made by the Texas Department of Transportation under Chapter 186, General Law, Acts of the 39th Legislature, Regular Session, 1925 (Article 6674a et seq., Vernon’s Texas Civil Statutes). (V.A.C.S. Art. 6252-5b, Sec. 3 (part).)
(Sections 2252.034 to 2252.060 reserved for expansion)