ADE Director's Communication Memo Form

Memo Number : COM-10-202

Date Created : 05/26/2010


Co-op Directors
other: Maintenance

Type of Memo: Informational
Response Required: No
Section:   Facilities and Transportation - Douglas Eaton, Director
Construction Contract Change Regarding Retention

Regulatory Authority:
Act 193 of 2009

Contact Person:
Doug Eaton

Phone Number:


Act 193 of 2009 amended AR. Code. Ann. 22-9-604(a) concerning withholding of retention proceeds in a construction contract.

School districts are advised that any contract for construction which exceeds $20,000 and which requires a performance bond, must contain a clause stipulating that the contractor is entitled to payment of 95 percent of the earned progress payments when due, with the school district retaining 5 percent to ensure faithful performance of the contract.

The requirement for a 10 percent retention to 50 percent completion has been eliminated from the law.


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