Prompt Payment Ordinance
AN ordinance concerning business.
Be it enacted by the [Insert Governing Body],represented in the [Insert Jurisdiction]:
Section 1. The Contractor Prompt Payment Ordinance as follows:
A construction contract may provide for the withholding of retainage of up to 10% of any payment made prior to the completion of 50% of the contract. When a contract is 50% complete, retainage withheld shall be reduced so that no more than 5% is held. After the contract is 50% complete, no more than 5% of the amount of any subsequent payments made under the contract may be held as retainage.
[Insert Effective date]