Iowa SF574 modifies rules for retention fees and bonds on public improvement contracts.

Iowa SF574 amends the retention of fees for public improvement contracts. It allows a principal contractor to post a retention bond with the public corporation as a substitute for retention funds. The bond must be in the amount of five percent of the original contract price. The public corporation must pay all retention funds being held to the contractor within twenty days of receiving the bond. If the contractor serves a written demand on the person filing a claim, an action must be commenced within thirty days, or the claim will be barred.

Iowa SF574 modifies rules for retention fees and bonds on public improvement contracts.

Iowa SF574 amends the retention of fees for public improvement contracts. It allows a principal contractor to post a retention bond with the public corporation as a substitute for retention funds. The bond must be in the amount of five percent of the original contract price. The public corporation must pay all retention funds being held to the contractor within twenty days of receiving the bond. If the contractor serves a written demand on the person filing a claim, an action must be commenced within thirty days, or the claim will be barred.