Introduced by Rep. Steven Brunk (R) on February 3, 2009, in his role as committee chair, to regulate the use of "retention" agreements in contracts for public and private construction. A retainer is money earned by a contractor, but is withheld to ensure the contractor's performance for the remainder of the project. The bill would: limit retainage to no more than 5 percent of the contract amount; allow retained amounts to be withheld in increments from each monthly payment; preclude contractors from withholding more than 150 percent of the value of incomplete work; and, allow contractors to provide specified alternate security in lieu of any contracted retention arrangement.
Referred to the House Commerce and Labor Committee on March 11, 2009.
Reported in the House on February 17, 2010, recommending passage of a substitute bill, to replace the previous version of the bill with one that revises details based on testimony and "fine tuning". The main substance of the bill as previously described is not changed, but the new version would conform language of the Kansas Fairness in Public Construction Act to
the Kansas Fairness in Private Construction Act.
Passed in the House (80 to 42) on February 19, 2010, to regulate the use of "retention" agreements in contracts for public and private construction, including provisions to limit retainage to no more than 5 percent of the contract amount, allow retained amounts to be withheld in increments from each monthly payment, preclude contractors from withholding more than 150 percent of the value of incomplete work, allow contractors to provide specified alternate security in lieu of any contracted retention, and to conform language of the Kansas Fairness in Public Construction Act to the Kansas Fairness in Private Construction Act. [Vote Details and Comments]
Received in the Senate on February 24, 2010.
Referred to the Senate Judiciary Committee on February 25, 2010.