An act relating to construction contracts, the official text

1                    STATE OF OKLAHOMA

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2                  1st Session of the 60th Legislature (2025)

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3 SENATE BILL 739              By: Stewart
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6                    AS INTRODUCED

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7   An Act relating to construction contracts; amending

7   61 O.S. 2021, Section 113.1, as amended by Section

8   24, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2024,

8   Section 113.1), which relates to retainage;

9   prohibiting certain entities from withholding

9   retainage for certain contracts; and providing an

10  effective date.

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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14  SECTION 1.     AMENDATORY  61 O.S. 2021, Section 113.1, as

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15 amended by Section 24, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2024,
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16 Section 113.1), is amended to read as follows:
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17  Section 113.1. A. A public construction contract shall provide

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18 for partial payment based upon work completed. The contract shall
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19 provide that up to five percent (5%) of all partial payments made
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20 shall be withheld as retainage until the project is fifty percent
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21 (50%) complete as determined by the awarding agency. When the
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22 awarding public agency determines that the project is at least fifty
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23 percent (50%) complete, the retainage amount shall be two and one-
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24 half percent (2.5%) with respect to the balance of the work.
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    Req. No. 1137                                              Page 1
1   B. The Department of Transportation or the Oklahoma Turnpike

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2 Authority shall not withhold retainage on public construction
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3 contracts awarded by the Department or the Authority.
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4   C. The Department of Transportation shall not withhold

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5 retainage or require any bond on projects awarded to railroads on
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6 the railroad's privately owned or operated rail property.
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7   D. Construction contracts or subcontracts subject to a bond

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8 shall not withhold retainage.
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9   SECTION 2. This act shall become effective November 1, 2025.

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11  60-1-1137      CAD  1/19/2025 5:42:18 AM

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    Req. No. 1137                                            Page 2