The bill amends existing laws regarding the retention of fees for public improvement contracts in Iowa. Specifically, it reduces the maximum percentage that public corporations can retain from monthly payments for construction work from five percent to three percent. This change applies to both the payments made to contractors and the payments that contractors can retain from subcontractors. The amendments are reflected in Section 573.12, where the language has been updated to specify the new three percent cap.

Additionally, the bill clarifies that the retained percentage, which cannot exceed three percent, serves as a fund for claims related to materials and labor for the public improvement. This provision is outlined in Section 573.13, ensuring that the funds are managed according to the established regulations. Overall, the bill aims to streamline the financial processes associated with public improvement contracts while providing clearer guidelines for retention percentages.

Statutes affected:
Introduced: 573.7, 573.14, 573.13, 573.21
Reprinted: 573.12