Texas Attorney General Opinion: C-6 Page: 1 of 5
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THEro Ae'wllTORE iErL
. "":: January 24, 1963
Honorable D. C. Greer , Opinion No. c-6
State Highway Engineer
Texas Highway Department Re: Construction of Article
Austin, Texas 6674m and related statutes
as to the amount to be
withheld on highway con-
struction contracts under
Dear Mr. Greer: stated facts.
Your recent letter-requests the opinion of this office
concerning the Ireferenced statutes, under the following sltua-
tion:
"On a project.which has been recently com-
pleted, our contractor went bankrupt and defaulted.
His surety took over and completed the job and, in
addition, paid off such claims for materials and
wages as were deemed to have qualified under the
payment bond provided- for in Article 5160. This
Department has notice'of some $13,000.00.worth of
alleged claims which are still unpaid and conse-
quently has withheld this amount from its payment
to the contractor."
"Since the job in question was a small one
and only totaled some $60,000.00, it has been
suggested that the subject of Article 6674m being
retaInage it only requires that 5%, or $3,000.00,
be withheld until it is shown that all bills have
been paid. Would you please advise us whether we
should withhold an amount equal to the alleged
unpaid bills-or whether we can pay the contractor
all but 5% of the contract price."
Article 6674m, Vernon's Civll Statutes, requires the
following retainage from final payment of highway construction
CAtracts:
"Said contracts may provide for partial pay-
ments to an amount not exceeding ninety-five per
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Texas. Attorney-General's Office. Texas Attorney General Opinion: C-6, text, January 24, 1963; (https://texashistory.unt.edu/ark:/67531/metapth268424/m1/1/: accessed May 6, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.