2-Sample Contract Retention Preference Form.pdf
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- Solicitation number
- 2027-20
- Issued by
- Multnomah County, Oregon
About this file
This document is a Contract Retention Preference Form used by the City of Gresham, Oregon, for the Cascade Wells 6A and 6B Chlorination System project located at 640 223rd Avenue. The form presents contractors with four options for handling public contract retention monies and requires contractors to select one method before progress payments can be made. The four options include: the City holding all retention funds for disbursement upon final project acceptance; the City depositing accumulated retainage into an interest-bearing account with earnings accruing to the contractor; the contractor depositing bonds, securities, or other negotiable instruments with the City as an alternative to cash retainage; or the contractor submitting a surety bond in lieu of all or a portion of required retainage. All selections must be authorized by a contractor representative signature and remain in effect for the project's duration, except when a subcontractor provides a surety bond prior to final payment.
The retention preference selection directly impacts cash flow management for the contractor throughout the project life. If the City incurs additional costs as a result of the chosen retention option, the City may recover such costs through reduction of the final payment. Any surety bonds submitted must comply with Oregon Revised Statutes requirements, be executed by an authorized Oregon surety bonding company, and be subject to all claims and liens under applicable state law. The form emphasizes that no progress payments will be issued until the completed preference form is returned to the Project Manager, making this an essential administrative requirement for contract performance initiation.
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Text version
CONTRACT RETENTION PREFERENCE FORM
FOR: CONTRACTOR
PROJECT
TO THE CONTRACTOR:
Contractors have the following options regarding public contract retention monies. Each Contractor must choose one of the following methods of handling retention:
Option Description [ ] 1. The City will hold all retention in a fund and will disburse the money directly to the Contractor upon final acceptance of the project. ORS 279C.560(2)(a).
[ ] 2. The City will deposit the accumulated retainage in an interest-bearing account with a bank or other financial institution. Earnings on the account accrue to the contractor. ORS 279C.560(5)
[ ] 3. The Contractor may deposit bonds, securities or other instruments listed in ORS 279C.560(6) that are negotiable by the City with the City or in a bank or other financial institution, to be held by the City instead of cash retainage for the benefit of the City, which the City will accept unless the City first finds in writing good cause for rejection based on unique project circumstances, in accordance with ORS 279C.560(1)(c). This deposit must be made before any progress payments will be made on the contract. All securities deposited will be returned to the Contractor upon final acceptance of the project.
[ ] 4. The Contractor may submit a Surety bond in lieu of all or a portion of the retainage required under the Contract. The City will accept this Surety bond unless the City first finds in writing good cause for rejection based on unique project circumstances in accordance with ORS 279C.560(1)(c). The Surety bond must be in substantially the form specified in ORS 701.435
(4) and executed by a Surety bonding company that is authorized to transact Surety business in the State of Oregon and may not be a Surety obligation of an individual. The Surety bond and any proceeds of the Surety bond must be made subject to all claims and liens and in the same manner and priority specified for retainage under ORS 279C.550 to 279C.570 and ORS 279C.600 to 279C.625. The City will reduce the cash retainage held by an amount equal to the value of the Surety bond and pay the amount of the reduction to Contractor according to ORS 279C.570.
The choice shall remain in effect for the life of the project, except that if a contractor receives a surety bond from a subcontractor any time prior to final payment, the City will accept the surety bond subject to the requirements of ORS 279C.560(8). Please indicate your choice by marking one of the boxes above and have an authorized representative sign below.
If the City incurs additional costs as a result of the exercise of any of these options for retainage, the City may recover such costs by reduction of the final payment.
No progress payments shall be made until this form is returned to the Project Manager.
Signed _________________________________________________________
Date ______________________Print Name
CONTRACT RETENTION PREFERENCE FORM
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