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IA SF574
Bill
AI Summary
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Reduces the maximum percentage that public corporations can retain from monthly payments to contractors on public improvement projects from 5% to 3%
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Lowers the maximum retention that contractors can withhold from subcontractor payments from 5% to 3%, or the amount specified in their contract, whichever is less
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Establishes that the retained percentage (capped at 3%) constitutes a fund for paying claims for materials furnished and labor performed on the improvement
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Amends Iowa Code sections 573.12 and 573.13 governing payment procedures for public construction contracts
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Takes effect July 1, 2025
Legislative Description
A bill for an act relating to retention of fees for public improvement contracts. (Formerly SF 431.) Effective date: 07/01/2025.
Last Action
Signed by Governor. S.J. 917.
4/25/2025