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House File 458 - IntroducedA Bill ForAn Act 1concerning the retention of funds due to contractors on
2public improvements.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 573.1, Code 2011, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 2A. “Principal contractor” means those
4persons, firms, or corporations having contracts directly with
5the public corporation.
6 NEW SUBSECTION. 6. “Subcontractor” shall include every
7person, firm, or corporation performing labor for or furnishing
8materials to a public improvement, except those persons, firms,
9or corporations having contracts directly with the public
10corporation.
11 Sec. 2. Section 573.15, Code 2011, is amended by striking
12the section and inserting in lieu thereof the following:
13573.15 Exception.
141. A person, firm, or corporation performing labor for or
15furnishing materials to a subcontractor shall not be entitled
16to a claim against the retainage or bond under this chapter
17unless the person, firm, or corporation performing the labor or
18furnishing the materials does all of the following:
19a. Notifies the principal contractor in writing within
20forty-five calendar days of first performing the labor or
21furnishing the materials for the public improvement. The
22notice shall contain the name, mailing address, and telephone
23number of the person, firm, or corporation performing the labor
24or furnishing the materials and the name of the subcontractor
25for whom the labor was performed or to whom the materials
26were furnished. Additional labor performed, or materials
27furnished by the same person, firm, or corporation to the same
28subcontractor for the public improvement shall be covered by
29this notice.
30b. Supports the claim with a certified statement that the
31principal contractor was notified in writing with a notice
32containing the name, mailing address, and telephone number
33of the person, firm, or corporation performing the labor or
34furnishing the materials and the name of the subcontractor for
35whom the labor was performed or to whom the materials were
-1-1furnished, within forty-five calendar days after the labor
2was performed or the materials were furnished, pursuant to
3paragraph “a”.
42. Notwithstanding any other provision of this chapter, a
5principal contractor shall not be prohibited from requesting
6information from a subcontractor or from a person, firm, or
7corporation performing labor for or furnishing materials to a
8subcontractor regarding payments made or payments to be made
9to a person, firm, or corporation performing labor for or
10furnishing materials to a subcontractor.
113. This section does not apply to claims for labor
12filed by employees of principal contractors or employees of
13subcontractors.
144. A public corporation shall not retain any part of the
15unpaid fund due to the contractor as provided in this chapter
16because of the commencement of any action by the contractor
17against the state department of transportation under authority
18granted in section 613.11.
19EXPLANATION
20Current law provides an exception to the requirement that a
21public corporation retain a portion of funds due a contractor
22on a public improvement project in a fund for the payment
23of claims for materials furnished and labor performed. The
24exception provides that a public corporation need only retain
25funds due a supplier of material to a general contractor if
26the supplier provides the general contractor with one of two
27permitted types of notice after the materials are supplied.
28This bill provides that the exception shall apply to both
29claims for labor and claims for material. The bill also amends
30the notice requirement to provide that a supplier of labor
31or material to a general contractor must give only one type
32of notice, along with a certified statement that such notice
33was given. The bill provides that a principal contractor, as
34defined in the bill, shall not be prohibited from requesting
35information from a subcontractor or from an entity performing
-2-1labor for or furnishing materials to a subcontractor regarding
2payments made to the entity from the subcontractor for labor or
3materials. The bill provides that the bill does not apply to
4claims for labor filed by employees of principal contractors
5or employees of subcontractors.
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2public improvements.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 573.1, Code 2011, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 2A. “Principal contractor” means those
4persons, firms, or corporations having contracts directly with
5the public corporation.
6 NEW SUBSECTION. 6. “Subcontractor” shall include every
7person, firm, or corporation performing labor for or furnishing
8materials to a public improvement, except those persons, firms,
9or corporations having contracts directly with the public
10corporation.
11 Sec. 2. Section 573.15, Code 2011, is amended by striking
12the section and inserting in lieu thereof the following:
13573.15 Exception.
141. A person, firm, or corporation performing labor for or
15furnishing materials to a subcontractor shall not be entitled
16to a claim against the retainage or bond under this chapter
17unless the person, firm, or corporation performing the labor or
18furnishing the materials does all of the following:
19a. Notifies the principal contractor in writing within
20forty-five calendar days of first performing the labor or
21furnishing the materials for the public improvement. The
22notice shall contain the name, mailing address, and telephone
23number of the person, firm, or corporation performing the labor
24or furnishing the materials and the name of the subcontractor
25for whom the labor was performed or to whom the materials
26were furnished. Additional labor performed, or materials
27furnished by the same person, firm, or corporation to the same
28subcontractor for the public improvement shall be covered by
29this notice.
30b. Supports the claim with a certified statement that the
31principal contractor was notified in writing with a notice
32containing the name, mailing address, and telephone number
33of the person, firm, or corporation performing the labor or
34furnishing the materials and the name of the subcontractor for
35whom the labor was performed or to whom the materials were
-1-1furnished, within forty-five calendar days after the labor
2was performed or the materials were furnished, pursuant to
3paragraph “a”.
42. Notwithstanding any other provision of this chapter, a
5principal contractor shall not be prohibited from requesting
6information from a subcontractor or from a person, firm, or
7corporation performing labor for or furnishing materials to a
8subcontractor regarding payments made or payments to be made
9to a person, firm, or corporation performing labor for or
10furnishing materials to a subcontractor.
113. This section does not apply to claims for labor
12filed by employees of principal contractors or employees of
13subcontractors.
144. A public corporation shall not retain any part of the
15unpaid fund due to the contractor as provided in this chapter
16because of the commencement of any action by the contractor
17against the state department of transportation under authority
18granted in section 613.11.
19EXPLANATION
20Current law provides an exception to the requirement that a
21public corporation retain a portion of funds due a contractor
22on a public improvement project in a fund for the payment
23of claims for materials furnished and labor performed. The
24exception provides that a public corporation need only retain
25funds due a supplier of material to a general contractor if
26the supplier provides the general contractor with one of two
27permitted types of notice after the materials are supplied.
28This bill provides that the exception shall apply to both
29claims for labor and claims for material. The bill also amends
30the notice requirement to provide that a supplier of labor
31or material to a general contractor must give only one type
32of notice, along with a certified statement that such notice
33was given. The bill provides that a principal contractor, as
34defined in the bill, shall not be prohibited from requesting
35information from a subcontractor or from an entity performing
-2-1labor for or furnishing materials to a subcontractor regarding
2payments made to the entity from the subcontractor for labor or
3materials. The bill provides that the bill does not apply to
4claims for labor filed by employees of principal contractors
5or employees of subcontractors.
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