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.