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City # 15-6830 <br />FED # HSIPL 5063(154) <br />Local Assistance Procedures Manual Exhibit 12-G <br />Required Federal -aid Contract Language <br />Schedule work to allow time for QAP. <br />10. PROMPT PAYMENT OF FUNDS WITHHELD TO SUBCONTRACTORS <br />(The local agency must include one of the following three provisions to ensure prompt and full payment of <br />any retainage from the prime contractor, or subcontractor, to a subcontractor. Remove or strike out the <br />methods not used.) <br />(EITHER) <br />No retainage will be withheld by the agency from progress payments due the prime contractor. Retainage by <br />the prime contractor or subcontractors is prohibited and no retainage will be held by the prime contractor from <br />progress due subcontractors. Any violation of this provision shall subject the violating prime contractor or <br />subcontractor to the penalties, sanctions and other remedies specified in Section 7108.5 of the California <br />Business and Professions Code. This requirement shall not be construed to limit or impair any contractual, <br />administrative, or judicial remedies otherwise available to the prime Contractor or subcontractor in the event <br />of a dispute involving late payment or nonpayment by the prime contractor or deficient subcontract <br />performance, or noncompliance by a subcontractor. <br />Iffiff <br />No retainage will be held by the agency from progress payments due the prime contractor. Any retainage <br />held by the prime contractors or subcontractors from progress payments due subcontractors shall be promptly <br />paid in full to subcontractors within 30 days after the subcontractor's work is satisfactorily completed. <br />Federal law (49CFR26.29) requires that any delay or postponement of payment over the 30 days may take <br />place only for good cause and with the agency's prior written approval. Any violation of this provision shall <br />subject the violating prime contractor or subcontractor to the penalties, sanctions and other remedies specified <br />in Section 7108.5 of the Business and Professions Code. These requirements shall not be construed to limit or <br />impair any contractual, administrative, orjudicial remedies otherwise available to the prime Contractor or <br />subcontractor in the event of a dispute involving late payment or nonpayment by the prime contractor, <br />deficient subcontract performance, or noncompliance by a subcontractor. <br />(OR) <br />The agency shall hold retainage from the prime contractor and shall make prompt and regular incremental <br />acceptances of portions, as determined by the agency, of the contract work, and pay retainage to the prime <br />contractor based on these acceptances. The prime contractor, or subcontractor, shall return all monies <br />withheld in retention from a subcontractor within 30 days after receiving payment for work satisfactorily <br />completed and accepted including incremental acceptances of portions of the contract work by the agency. <br />Federal law (49CFR26.29) requires that any delay or postponement of payment over 30 days may take place <br />only for good cause and with the agency's prior written approval. Any violation of this provision shall <br />subject the violating prime contractor or subcontractor to the penalties, sanctions and other remedies specified <br />in Section 7108.5 of the Business and Professions Code. These requirements shall not be construed to limit or <br />impair any contractual, administrative, or judicial remedies otherwise available to the prime contractor or <br />subcontractor in the event of a dispute involving late payment or nonpayment by the prime contractor, <br />deficient subcontract performance, or noncompliance by a subcontractor. <br />11. FORM FHWA-1273 REQUIRED CONTRACT PROVISIONS FEDERAL AID CONTRACTS (Excluding <br />ATTACHMENT A - EMPLOYMENT AND MATERIALS PREFERENCE FOR APPALACHIAN <br />DEVELOPMENT HIGHWAY SYSTEM OR APPALACHIAN LOCAL ACCESS ROAD CONTRACTS) <br />[The following 10 pages must be physically inserted into the contract without modification.] <br />Page 7 of 22 <br />DLA -013 13-06 August 12, 2013 <br />