New Search
16.7 .3 .2 .5 Acceptable Bonds and Securities. <br /> Bonds and securities deposited or <br />acquired in lieu of retainage, as permitted by this section, shall be of a <br />character approved by the Director of DAS, including but not limited to: <br />(a) Bills, certificates, notes or bonds of the United States. <br />(b) Other obligations of the United States or its agencies. <br />(c) Obligations of any corporation wholly owned by the federal <br />government. <br />(d) Indebtedness of the Federal National Mortgage Association. <br />16.7 .3 .2 .6 Use of Surety Bonds with Approval of City. <br /> The contractor, with the <br />approval of the city, may deposit a surety bond for all or any portion of the <br />amount of funds retained, or to be retained, by the city in a form <br />acceptable to the city. The bond and any proceeds therefrom shall be made <br />subject to all claims and liens and in the same manner and priority as set <br />forth for retainage under ORS 279C.550 to 279C.570 and 279C.600 to <br />279C.625. The city shall reduce the retainage in an amount equal to the <br />value of the bond and pay the amount of the reduction to the contractor in <br />accordance with ORS 279C.570. Whenever the city accepts a surety bond <br />from a contractor in lieu of retainage, the contractor shall accept like <br />bonds from any subcontractor or supplier from which the contractor has <br />retainage. The contractor shall then reduce the retainage in an amount <br />equal to the value of the bond and pay the amount of the reduction to the <br />subcontractor or supplier. <br />16.7 .3 .3 Release of Retainage on Final Payment; Interest. <br /> The retainage held by the <br />city shall be included in and paid to the contractor as part of the final payment <br />of the contract price. The city shall pay to the contractor interest at the rate of <br />one and one-half percent (1.5%) per month on the final payment due the <br />contractor, interest to commence thirty (30) days after the work under the <br />contract has been completed and accepted and to run until the date when the <br />final payment is tendered to the contractor. The contractor shall notify the city <br />in writing when the contractor considers the work complete and the city shall, <br />within fifteen (15) days after receiving the written notice, either accept the work <br />or notify the contractor of work yet to be performed on the contract. If the city <br />does not, within the time allowed, notify the contractor of work yet to be <br />performed to fulfill contractual obligations, the interest provided by this <br />subsection shall commence to run thirty (30) days after the end of the fifteen <br />(15) day period. <br />16.7 .4 C’EIWW <br />ONTRACTORSNTITLEMENT TO NTEREST ON RONGFULLY ITHHELD <br />P. <br /> The city shall pay, upon settlement or judgment in favor of the <br />AYMENTS <br />contractor regarding any dispute as to the compensation due a contractor for work <br />performed under the terms of a public contract, the amount due plus interest at the <br />rate of two times the discount rate, but not to exceed thirty percent (30%), on 90-day <br />commercial paper in effect at the Federal Reserve Bank in the Federal Reserve <br />Article 16 Contract Administration Page 86 <br />Exhibit A to Administrative Order No. 44-08-06-F <br /> <br />