Georgia CommonsOfficial Code of Georgia Annotated
Title 13. CONTRACTS · Chapter 10. CONTRACTS FOR PUBLIC WORKS · Article 2. RETENTION OF CONTRACTUAL PAYMENTS AND CREATION OF ESCROW ACCOUNTS ON CONTRACTS FOR INSTALLATION, IMPROVEMENT, MAINTENANCE, OR REPAIR OF WATER OR SEWER FACILITIES
13-10-81. Authorization and procedure for retention of contractual payments by state or political subdivisions; procedure for final payment.
Current through: Including Acts of the 2025 Regular Session of the General Assembly.
- (a)
Any department, agency, or instrumentality of the state or any political subdivision of the state is authorized to insert in the specifications of all contracts relating to the installation, extension, improvement, maintenance, or repair of any water or sewer facility a clause providing for the retention of amounts not exceeding 5 percent of the gross value of the completed work as may be provided for in the contract. Retainage shall be invested at the current market rate and any interest earned on the retained amount by such department, agency, or instrumentality of the state or any political subdivision of the state shall be paid to the contractor when the project has been completed within the time limits specified and for the price specified in the contract, or in any amendments or change orders approved in accord with the terms of the contract, as certified pursuant to subsection (b) of this Code section.#
- (b)
Final payment of the retained amounts to the contractor under the contract to which the retained amounts relate shall be made after certification by the engineer in charge of the project covered by the contract that the work has been satisfactorily completed and is accepted in accordance with the contract, plans, and specifications. Payment to the contractor of interest earned on the retained amounts shall be made after certification by the engineer in charge of the project covered by the contract that the work has been completed within the time specified and within the price specified in the contract.#
- (c)
At substantial completion of the work and as the governmental entity’s authorized contract representative determines the work to be reasonably satisfactory, the governmental entity shall, within 30 days after invoice and other appropriate documentation as may be required by the contract documents are provided, pay the retainage to the contractor. If at that time there are any remaining incomplete items, an amount equal to 200 percent of the value of each item as determined by the governmental entity’s authorized contract representative shall be withheld until such item or items are completed.#
History
Ga. L. 1975, p. 1045, § 1; Code 1981, § 13-10-20; Ga. L. 1983, p. 475, § 1; Ga. L. 1992, p. 2091, § 1; Code 1981, § 13-10-81, as redesignated by Ga. L. 2001, p. 820, § 1; Ga. L. 2022, p. 760, § 2/SB 438.
Amendments
The 2022 amendment, effective July 1, 2022, in subsection (a), in the first sentence, substituted “5 percent” for “10 percent” and deleted “; provided, however, that no amounts shall be retained on estimates or progress payments submitted after 50 percent of the work on the project has been completed if in the opinion of the department, agency, or instrumentality of the state or any political subdivision thereof such work is satisfactory and has been completed on schedule.” from the end, and deleted the former second and third sentences, which read: “This will not affect the retained amounts on the first 50 percent of the work on the project which may continue to be held to ensure satisfactory completion of the project. If, after discontinuing the retention, the department, agency, or instrumentality of the state or any political subdivision thereof determines that the work is unsatisfactory or has fallen behind schedule, retention may be resumed at the previous level.”; and, in subsection (c), substituted “entity shall, within” for “entity shall within” and “provided, pay” for “provided pay” in the first sentence, and deleted “minor” following “incomplete” in the second sentence.
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Current through: Including Acts of the 2025 Regular Session of the General Assembly.
Text read from t13-(v11)-pdf.pdf, Volume V11, 2010 edition, 2025 supplement, pages 151 to 152; merge action: replaced; file SHA-256 6acfbda3d9fa.