Common use of Prompt Payment of Withheld Funds to Subcontractors Clause in Contracts

Prompt Payment of Withheld Funds to Subcontractors. The local agency shall ensure prompt and full payment of retainage from the prime contractor to the subcontractor within thirty (30) days after the subcontractor’s work is satisfactorily completed and accepted. This shall be accompanied by including; either (1), (2), or (3) of the following provisions [local agency equivalent will need Caltrans approval] in their federal-aid contracts to ensure prompt and full payment of retainage [withheld funds] to subcontractors in compliance with 49 CFR 26.29.

Prompt Payment of Withheld Funds to Subcontractors. The local agency Local Agency shall ensure prompt and full payment of retainage from the prime contractor to the subcontractor within thirty seven (307) days for construction contracts, or within fifteen (15) days for consultant contracts after the subcontractor’s work is satisfactorily completed and accepted. This shall be accompanied by including; either (1), (2), or (3) of the following provisions [local agency Local Agency equivalent will need Caltrans approval] in their federal-aid contracts to ensure prompt and full payment of retainage [withheld funds] to subcontractors in compliance with 49 CFR 26.29.