§ 2.2-4334. Deposit of certain retained funds on certain contracts with localgovernments; penalty for failure to timely complete.
A. Any county, city, town or agency thereof or other political subdivision ofthe Commonwealth when contracting directly with contractors for publiccontracts of $200,000 or more for construction of highways, roads, streets,bridges, parking lots, demolition, clearing, grading, excavating, paving,pile driving, miscellaneous drainage structures, and the installation ofwater, gas, sewer lines and pumping stations where portions of the contractprice are to be retained, shall include in the Bid Proposal an option for thecontractor to use an escrow account procedure for utilization of thepolitical subdivision's retainage funds by so indicating in the spaceprovided in the proposal documents. In the event the contractor elects to usethe escrow account procedure, the escrow agreement form included in the BidProposal and Contract shall be executed and submitted to the politicalsubdivision within fifteen calendar days after notification. If the escrowagreement form is not submitted within the fifteen-day period, the contractorshall forfeit his rights to the use of the escrow account procedure.
B. In order to have retained funds paid to an escrow agent, the contractor,the escrow agent, and the surety shall execute an escrow agreement form. Thecontractor's escrow agent shall be a trust company, bank or savingsinstitution with its principal office located in the Commonwealth. The escrowagreement and all regulations adopted by the political subdivision enteringinto the contract shall be substantially the same as that used by theVirginia Department of Transportation.
C. This section shall not apply to public contracts for construction forrailroads, public transit systems, runways, dams, foundations, installationor maintenance of power systems for the generation and primary and secondarydistribution of electric current ahead of the customer's meter, theinstallation or maintenance of telephone, telegraph or signal systems forpublic utilities and the construction or maintenance of solid waste orrecycling facilities and treatment plants.
D. Any such public contract for construction with a county, city, town oragency thereof or other political subdivision of the Commonwealth, whichincludes payment of interest on retained funds, may require a provisionwhereby the contractor, exclusive of reasonable circumstances beyond thecontrol of the contractor stated in the contract, shall pay a specifiedpenalty for each day exceeding the completion date stated in the contract.
E. Any subcontract for such public project that provides for similar progresspayments shall be subject to the provisions of this section.
§ 2.2-4334. Deposit of certain retained funds on certain contracts with localgovernments; penalty for failure to timely complete.
A. Any county, city, town or agency thereof or other political subdivision ofthe Commonwealth when contracting directly with contractors for publiccontracts of $200,000 or more for construction of highways, roads, streets,bridges, parking lots, demolition, clearing, grading, excavating, paving,pile driving, miscellaneous drainage structures, and the installation ofwater, gas, sewer lines and pumping stations where portions of the contractprice are to be retained, shall include in the Bid Proposal an option for thecontractor to use an escrow account procedure for utilization of thepolitical subdivision's retainage funds by so indicating in the spaceprovided in the proposal documents. In the event the contractor elects to usethe escrow account procedure, the escrow agreement form included in the BidProposal and Contract shall be executed and submitted to the politicalsubdivision within fifteen calendar days after notification. If the escrowagreement form is not submitted within the fifteen-day period, the contractorshall forfeit his rights to the use of the escrow account procedure.
B. In order to have retained funds paid to an escrow agent, the contractor,the escrow agent, and the surety shall execute an escrow agreement form. Thecontractor's escrow agent shall be a trust company, bank or savingsinstitution with its principal office located in the Commonwealth. The escrowagreement and all regulations adopted by the political subdivision enteringinto the contract shall be substantially the same as that used by theVirginia Department of Transportation.
C. This section shall not apply to public contracts for construction forrailroads, public transit systems, runways, dams, foundations, installationor maintenance of power systems for the generation and primary and secondarydistribution of electric current ahead of the customer's meter, theinstallation or maintenance of telephone, telegraph or signal systems forpublic utilities and the construction or maintenance of solid waste orrecycling facilities and treatment plants.
D. Any such public contract for construction with a county, city, town oragency thereof or other political subdivision of the Commonwealth, whichincludes payment of interest on retained funds, may require a provisionwhereby the contractor, exclusive of reasonable circumstances beyond thecontrol of the contractor stated in the contract, shall pay a specifiedpenalty for each day exceeding the completion date stated in the contract.
E. Any subcontract for such public project that provides for similar progresspayments shall be subject to the provisions of this section.
§ 2.2-4334. Deposit of certain retained funds on certain contracts with localgovernments; penalty for failure to timely complete.
A. Any county, city, town or agency thereof or other political subdivision ofthe Commonwealth when contracting directly with contractors for publiccontracts of $200,000 or more for construction of highways, roads, streets,bridges, parking lots, demolition, clearing, grading, excavating, paving,pile driving, miscellaneous drainage structures, and the installation ofwater, gas, sewer lines and pumping stations where portions of the contractprice are to be retained, shall include in the Bid Proposal an option for thecontractor to use an escrow account procedure for utilization of thepolitical subdivision's retainage funds by so indicating in the spaceprovided in the proposal documents. In the event the contractor elects to usethe escrow account procedure, the escrow agreement form included in the BidProposal and Contract shall be executed and submitted to the politicalsubdivision within fifteen calendar days after notification. If the escrowagreement form is not submitted within the fifteen-day period, the contractorshall forfeit his rights to the use of the escrow account procedure.
B. In order to have retained funds paid to an escrow agent, the contractor,the escrow agent, and the surety shall execute an escrow agreement form. Thecontractor's escrow agent shall be a trust company, bank or savingsinstitution with its principal office located in the Commonwealth. The escrowagreement and all regulations adopted by the political subdivision enteringinto the contract shall be substantially the same as that used by theVirginia Department of Transportation.
C. This section shall not apply to public contracts for construction forrailroads, public transit systems, runways, dams, foundations, installationor maintenance of power systems for the generation and primary and secondarydistribution of electric current ahead of the customer's meter, theinstallation or maintenance of telephone, telegraph or signal systems forpublic utilities and the construction or maintenance of solid waste orrecycling facilities and treatment plants.
D. Any such public contract for construction with a county, city, town oragency thereof or other political subdivision of the Commonwealth, whichincludes payment of interest on retained funds, may require a provisionwhereby the contractor, exclusive of reasonable circumstances beyond thecontrol of the contractor stated in the contract, shall pay a specifiedpenalty for each day exceeding the completion date stated in the contract.
E. Any subcontract for such public project that provides for similar progresspayments shall be subject to the provisions of this section.
