Indiana Code 5-16-5.5-3.5. Retainage; options to determine amount
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Sec. 3.5. (a) To determine the amount of retainage to be withheld, a state agency shall elect one (1) of the following options:
(2) Withhold no more than five percent (5%) nor less than three percent (3%) of the dollar value of all work satisfactorily completed until the public work is substantially complete.
(1) Withhold no more than ten percent (10%) nor less than six percent (6%) of the dollar value of all work satisfactorily completed until the public work is fifty percent (50%) complete, and nothing further after that.
Terms Used In Indiana Code 5-16-5.5-3.5
- minor: means a person less than eighteen (18) years of age. See Indiana Code 1-1-4-5
- Retainage: means any amount to be withheld from any payment to a contractor or subcontractor pursuant to the terms of a contract until the occurrence of a specified event. See Indiana Code 5-16-5.5-1
- State agency: means the state of Indiana or any commission or agency created by law. See Indiana Code 5-16-5.5-1
- Substantial completion: shall be construed to mean the date when the construction of a structure or building is sufficiently completed, in accordance with the plans and specifications, as modified by any completed change orders agreed to by the parties, so that the state agency can occupy the structure or building for the use for which it was intended. See Indiana Code 5-16-5.5-1
(b) If upon substantial completion of the work there are any remaining uncompleted minor items, an amount computed under section 6 of this chapter shall be withheld until those items are completed.
As added by Acts 1980, P.L.33, SEC.1. Amended by P.L.133-2007, SEC.7.