109.07 RETAINAGE ON CONSTRUCTION CONTRACTS FOR PUBLIC IMPROVEMENTS.

   (a)   As used in this section, “Public Improvement” shall mean any construction, reconstruction, enlargement, alteration, repair, remodeling, rehabilitation or renovation of a building, road, bridge, treatment works, water line, sewer, utility, stormwater or flood control infrastructure, and associated appurtenances for all such items, or any other item or works generally considered to be a capital improvement.

   (b)   As used in this section, “Contractor” shall mean the entity with whom the City contracts with to construct a particular Public Improvement, such as but not limited to, a general contractor, construction manager, or design builder.

   (c)   Notwithstanding any provision in the Ohio Revised Code to the contrary, the City Engineer shall identify in each contract for a Public Improvement the percentage of each payment application submitted by the Contractor that the City will retain until elements of the Public Improvement are totally complete and ready for final payment as set forth in the particular contract for the Public Improvement, which will be known as the Retainage Amount.

      (1)   The Retainage Amount will be based upon factors including but not limited to contract amount, contract complexity, contract length, bidding interest in the contract, and the source of funding for the contract.

      (2)   The Retainage Amount will be expressed as a percentage between zero percent (0%) and five percent (5%) of the Contractor’s payment applications. If there is no Retainage Amount identified in the Contract, the Retainage Amount will be two percent (2%).

      (3)   The City, at the City Engineer’s sole discretion, may elect to refrain from withholding retainage from pay applications after the underlying construction has reached a certain percentage of completion, if so set forth in the contract for the particular Public Improvement. If there is no such retainage cutoff established in the contract for the particular Public Improvement, the Retainage Amount will be withheld from all payment applications except for the final payment application.

   (d)   The City will be under no obligation to pay interest on the amounts retained.

   (e)   The City, in the City Engineer’s sole discretion, may elect to release retainage connected to elements of the Public Improvement completed before final completion of the overall Public Improvement, which release will not excuse the Contractor from its contractual obligations to repair or replace defective and nonconforming work should it be discovered later that the work connected to early release of retainage is defective or nonconforming.

(Ord. 21-019. Passed 3-2-21.)