1. (a) Retainage. The Applicant will withhold a minimum of 5% of each progress payment throughout the course of the construction contract.

2. (b) Full release of retainage. The executive administrator will approve the full release of retainage on a contract when:

   1. (1) the Applicant's engineer approves the contractor's request for release of retainage; and
   2. (2) the Applicant's governing body approves the release of retainage.
3. (c) Partial release of retainage. If a project is substantially complete, the executive administrator may approve a partial release of retainage.

Source Note:The provisions of this §371.87 adopted to be effective August 4, 2010, 35 TexReg 6680.