Section 32-2-75. Contract clauses for retainage of amounts constituting a percentage of gross value of completed work; time of final payment of retained amounts to contractor

   (a) As used in this Code section and Code Sections 32-2-76 and 32-2-77, the term:

   (1) "Engineer" means the chief engineer or the engineer designated by the Georgia Highway Authority or the State Road and Tollway Authority.

   (2) "Escrow account" means the certificates of deposit issued by a state or national bank in Georgia and any uninvested cash held in escrow.

   (3) "State" means the Department of Transportation, the Georgia Highway Authority, or the State Road and Tollway Authority.

   (4) "Treasurer" means the treasurer of the Department of Transportation, the treasurer of the Georgia Highway Authority, or the treasurer of the State Road and Tollway Authority.

(b) The state is authorized to insert a clause in the specifications of all contracts let and awarded as a result of public lettings for the construction, improvement, maintenance, or repair of any road, highway, bridge, or appurtenance thereto providing for the retainage of amounts constituting a percentage of the gross value of the completed work as may be provided for in the contract.

(c) Final payment of the retained amounts to the contractor under the contract to which the retained amount relates will be made after certification by the engineer that the work has been satisfactorily completed and is accepted in accordance with the contract, plans, and specifications.

Ga. L. 1971, p. 635, § 1; Ga. L. 1982, p. 3, § 32; Ga. L. 1985, p. 149, § 32; Ga. L. 1994, p. 591, § 8; Ga. L. 2001, p. 1251, § 2-1.