Number
041492
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
A charter ordinance relating to retention of payments on public construction projects.
Sections
7-26 rc
Analysis
This charter ordinance revises the provisions of the charter relating to retention of payments to public works contractors to be consistent with the recently-revised state statute on payment retention (s. 66.0901(9)(b), Wis. Stats.). Specifically, it reduces the percentage of the estimated value of the work done that may be retained by the city from 10% to not more than 5%, provided the work is not at least 50% complete. At 50% completion or anytime after 50% completion, partial payments shall be made in full (i.e., no retention) unless the commissioner of public works determines that work is not progressing satisfactorily, in which additional amounts may be retained, but the total retainage shall not be more than 10% of the value of the work completed.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 7-26 of the charter is repealed and recreated to read:
7-26. Payments on Contract as Work Progresses. 1. RETAINED PERCENTAGES. As the work progresses under a contract involving $1,000 or more for the construction, execution, repair, remodeling or improvement of a public work or building or for the furnishing of supplies or materials, regardless of whether proposals for the contract are required by law to be advertised, the commissioner shall, from time to time, grant the contractor an estimate of the amount and proportionate value of the work done, which entitles the contractor to receive the amount of the estimate, less the retainage, from the proper fund. The retainage shall be an amount equal to not more than 5% of the estimate until 50% of the work has been completed. At 50% completion, further partial payments shall be made in full to the contractor and no additional amounts may be retained unl...
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