(A) Minimum amount to be withheld. In any contract for construction which contract provides for progress payments in installments based upon an estimated percentage of completion, with a percentage of the contract’s proceeds to be retained by the town pending completion of the contract, the retained amount of each progress payment or installment shall be as determined by the Bids and Purchases Committee, but not less than 10%.
(B) Release of retained funds. When the work to be performed on a town construction project or pursuant to a town construction contract is to be performed by multiple prime contractors or by a prime contractor and multiple subcontractors, the work contracted to be done by each individual contractor or subcontractor may be considered a separate division of the contract for the purpose of retention. As each such division of the contract is certified as having been completed, that portion of the retained funds which is allocable to the completed division of the contract may be released forthwith to the prime contractor, who shall, within ten days of its receipt, release to the subcontractor responsible for the completed work the full amount of any retention previously withheld from that subcontractor by the prime contractor.
(Ord. 001-3, passed 3-1-2001)