Senate
File
574
-
Enrolled
Senate
File
574
AN
ACT
RELATING
TO
RETENTION
OF
FEES
FOR
PUBLIC
IMPROVEMENT
CONTRACTS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
573.12,
subsection
1,
paragraphs
a
and
b,
Code
2025,
are
amended
to
read
as
follows:
a.
Payments
made
under
contracts
for
the
construction
of
public
improvements,
unless
provided
otherwise
by
law,
shall
be
made
on
the
basis
of
monthly
estimates
of
labor
performed
and
material
delivered,
as
determined
by
the
project
architect
or
engineer.
The
public
corporation
shall
retain
from
each
monthly
payment
not
more
than
five
three
percent
of
that
amount
which
that
is
determined
to
be
due
according
to
the
estimate
of
the
architect
or
engineer.
b.
The
contractor
may
retain
from
each
payment
to
a
subcontractor
not
more
than
the
lesser
of
five
three
percent
or
the
amount
specified
in
the
contract
between
the
contractor
and
the
subcontractor.
Sec.
2.
Section
573.13,
Code
2025,
is
amended
to
read
as
follows:
573.13
Inviolability
and
disposition
of
fund.
A
public
corporation
shall
not
be
permitted
to
plead
noncompliance
with
section
573.12
and
the
retained
percentage
of
the
contract
price,
which
in
no
case
shall
be
more
than
five
three
percent,
constitutes
a
fund
for
the
payment
of
claims
for
materials
furnished
and
labor
performed
on
the
improvement
Senate
File
574,
p.
2
and
shall
be
held
and
disposed
of
by
the
public
corporation
as
provided
in
this
chapter
.
______________________________
AMY
SINCLAIR
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
574,
Ninety-first
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2025
______________________________
KIM
REYNOLDS
Governor