HEA 1163 Summary

• Reduces retainage withholding on minor uncompleted items from 400% to 200% of the item's value upon substantial completion of public works projects.

• Requires divisions to withhold no more than 6% of completed work value until 50% project completion, or no more than 3% until substantial completion, with option to choose either method.

• Modifies final settlement procedures to allow full payment within 61 days of substantial completion if contractor has fulfilled obligations, except for amounts withheld for uncompleted minor items or subcontractor claims.

• Changes subcontractor and supplier claim procedures to require filing with public body and delivery to contractor within 60 days of last work performed or material furnished, with 30-day minimum waiting period before suit against contractor's surety bond.

• Adds definitions for "person," "public body," and "public work" to Indiana Code Chapter 5-16-5, and clarifies payment bond requirements apply to public works projects estimated to cost more than $200,000 (mandatory) or $200,000 or less (optional).