§ 573-15a

573.15A Early release of retained funds. Notwithstanding section 573.14, a public corporation may release retained funds upon completion of ninety-five percent of the contract in accordance with the following: 1. Any person, firm, or corporation who has, under contract with the principal contractor or with subcontractors, performed labor, or furnished materials, service, or transportation, inthe construction of the public improvement, may file with the public corporation an itemized,sworn, written statement of the claim for the labor, or materials, service, or transportation.The claim shall be filed with the public corporation either before the expiration of the thirtydays after completion of ninety-five percent of the contract or at any time after the thirty-dayperiod if the public corporation has not paid the full contract price and no action is pendingto adjudicate rights in and to the unpaid portion of the contract price. 2. The fund, as provided in section 573.13, shall be retained by the public corporation for a period of thirty days after ninety-five percent of the contract has been completed.

f the contract price. 2. The fund, as provided in section 573.13, shall be retained by the public corporation for a period of thirty days after ninety-five percent of the contract has been completed. If at theend of the thirty-day period, a claim has been filed, in accordance with this section, the publiccorporation shall continue to retain from the unpaid funds, a sum equal to double the totalamount of all claims on file. The remaining balance of the unpaid fund, or if there are noclaims on file, the entire unpaid fund, may be released and paid to the contractor. 3. The public corporation, the principal contractor, or any claimant for labor or materials, service, or transportation, who has filed a claim or the surety on any bond given forperformance of the contract, at any time after the expiration of thirty days, and not later thansixty days after the completion of ninety-five percent of the contract, may bring an action inequity in the county where the public improvement is located to determine rights to moneyscontained in the fund or to enforce liability on the bond. The action shall be brought inaccordance with sections 573.16 through 573.18, with the completion of

is located to determine rights to moneyscontained in the fund or to enforce liability on the bond. The action shall be brought inaccordance with sections 573.16 through 573.18, with the completion of ninety-five percentof the contract taking the place of the date of final acceptance. 4. A public corporation that releases funds at the completion of ninety-five percent of the contract, in accordance with this section, shall not be required to retain additional funds. 96 Acts, ch 1126, §6 Sat Dec 23 11:08:08 2023 Iowa Code 2024, Section 573.15A (16, 0)