2005 Minnesota Statutes - 15.72 — Progress payments on public contracts; retainage.

     15.72 Progress payments on public contracts; retainage. 


    Subdivision 1.    Monthly payments.  Unless the terms of 
 the contract provide otherwise, a public contracting agency 
 shall make progress payments on a public contract for a public 
 improvement monthly as the work progresses.  Payments shall be 
 based upon estimates of work completed as approved by the public 
 contracting agency.  A progress payment shall not be considered 
 acceptance or approval of any work or waiver of any defects 
 therein.  


    Subd. 2.    Retainage.  A public contracting agency may 
 reserve as retainage from any progress payment on a public 
 contract for a public improvement an amount not to exceed five 
 percent of the payment.  A public agency may reduce the amount 
 of the retainage and may eliminate retainage on any monthly 
 contract payment if, in the agency's opinion, the work is 
 progressing satisfactorily. 


    HIST: 1980 c 464 s 2