This bill amends Section 113.1 of Title 61 of the Oklahoma Statutes, which pertains to retainage in public construction contracts. It establishes that public construction contracts must allow for partial payments based on completed work, with a maximum of five percent (5%) retainage until the project reaches fifty percent (50%) completion. Once the project is deemed at least fifty percent complete, the retainage is reduced to two and one-half percent (2.5%) for the remaining work. Additionally, the bill specifies that the Department of Transportation and the Oklahoma Turnpike Authority are prohibited from withholding retainage on their awarded contracts, and that no retainage or bond requirements can be imposed on projects awarded to railroads on their privately owned or operated rail property. Furthermore, the bill introduces new provisions stating that construction contracts or subcontracts subject to a bond shall not withhold retainage. This change aims to streamline the payment process for contractors and subcontractors involved in bonded construction projects. The effective date for this legislation is set for November 1, 2025.

Statutes affected:
Introduced: 61-113.1