Senate Bill No. 739 amends existing law regarding retainage in public construction contracts in Oklahoma. The bill stipulates that a public construction contract must allow for partial payments based on completed work, with a maximum of five percent (5%) retainage withheld until the project reaches fifty percent (50%) completion. Once this threshold is met, the retainage amount is reduced to two and one-half percent (2.5%) for the remaining work. Additionally, the bill specifically prohibits the Department of Transportation and the Oklahoma Turnpike Authority from withholding retainage on their awarded contracts, as well as on projects awarded to railroads on privately owned or operated rail property. Furthermore, the bill introduces a new provision stating that construction contracts or subcontracts subject to a bond shall not withhold retainage. This change aims to streamline payment processes in construction projects and ensure that contractors receive timely payments. The bill is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 61-113.1
Floor (Senate): 61-113.1