MO HB641

Reduces retainage limits on public works contracts to 5% for projects exceeding $50,000 where bonds are required, unless the public owner and architect/engineer determine higher retainage is needed (up to 10%).

Allows retainage up to 10% on public works projects under $50,000 where no bond is required by law.

Requires public owners to pay at least 98% of retainage within 30 days after substantial completion and acceptance of work, with written explanation required within 10 days if work is deemed not substantially completed.

Increases the bond requirement threshold from $25,000 to $50,000 for public works contracts.

Requires written explanations from public owners when rejecting work or deeming supplies unsuitable for payment, and specifies that direct payment to subcontractors/suppliers is only required in cases of contractor default where no bond exists or surety fails to perform.