The City Engineer is hereby authorized to include in construction specifications a provision that progress payments may be made to a contractor before the work is completed. Progress payments so paid to a contractor shall be based on actual measurements of labor and materials furnished, including materials delivered, under the contract to the date of the estimate. The amount of a progress payment shall be determined by subtracting from the value of the portion of the work completed and materials furnished to the date of the estimate a retainer of ten percent and the sum of all previous progress payments. Thirty days after completion of the work under the contract, and upon approval of the work by the City Engineer, the ten percent retainer may be reduced to five percent. After completion of all punch list items and after the contractor posts a one-year maintenance bond for the full amount of the contract, the five percent retainer may be released. No retainer shall be subject to interest payments to the contractor nor required to be deposited with an escrow agent who will pay interest to the contractor.
(Ord. 97-21. Passed 1-21-97.)