Okla. Stat. tit. 61, § 61-226: Retainage of portion of payment due - Release

A. A public construction contract shall provide for partial

payment based upon work completed. The contract shall provide that

up to five percent (5%) of all partial payments made shall be

withheld as retainage. At any time the contractor has completed in

excess of fifty percent (50%) of the total contract amount, the

retainage shall be reduced to two and one-half percent (2.5%) of the

amount earned to date once the owner or owner's duly authorized

representative has determined that satisfactory progress is being

made.

B. A subcontract shall include a provision for the retainage of

a portion of payment due. Such retainage shall not exceed five

percent (5%) of the amount of the payment due. When the work of the

subcontractor has been determined by the holder to be at least fifty

percent (50%) complete, the retainage shall be reduced to two and

one-half percent (2.5%) of the original contract amount.

C. No later than twenty-one (21) calendar days after a

certificate of substantial completion is issued for the project or

separate usable phase of the project and upon adequate performance

of the prime contractor and with approval of any applicable surety,

retainage shall be released by the owner to the prime contractor

less an amount no greater than one hundred fifty percent (150%) of

the estimated costs to correct any incomplete or defective work as

identified, itemized, and attached to the certificate of substantial

completion. All remaining funds shall be released as each

deficiency is satisfactorily completed. The prime contractor shall

release within ten (10) calendar days of receipt the share of those

funds that have been withheld from other entities. All other

entities shall release within seven (7) calendar days of receipt the

share of those funds that have been withheld from other entities.