Deposit of certain retained funds on certain contracts; penalty for failure to timely complete.

Richmond, Va., City Code § 21-61

in effect

Sec. 21-61. - Deposit of certain retained funds on certain contracts; penalty for failure to timely complete. (a) When contracting directly with contractors for public contracts of $200,000.00 or more for construction of highways, roads, streets, bridges, parking lots, demolition, clearing, grading, excavating, paving, pile driving, miscellaneous drainage structures, and the installation of water, gas, sewer lines and pumping stations where portions of the contract price are to be retained, the City shall include in the bid proposal an option for the contractor to use an escrow account procedure for utilization of the City's retainage funds by so indicating in the space provided in the proposal documents. If the contractor elects to use the escrow account procedure, the escrow agreement form included in the bid proposal and contract shall be executed and submitted to the Director within 15 calendar days after notification. If the escrow agreement form is not submitted within the 15-day period, the contractor shall forfeit the contractor's rights to the use of the escrow account procedure. (b) In order to have retained funds paid to an escrow agent, the contractor, the escrow agent, and the surety shall execute an escrow agreement form. The contractor's escrow agent shall be a trust company, bank or savings institution with its principal office located in the Commonwealth. The escrow agreement and all regulations adopted by the City shall be substantially the same as that used by the State Department of Transportation. (c) This section shall not apply to public contracts for construction for railroads, public transit systems, runways, dams, foundations, installation or maintenance of power systems for the generation and primary and secondary distribution of electric current ahead of the customer's meter, the installation or maintenance of telephone, telegraph or signal systems for public utilities, and the construction or maintenance of solid waste or recycling facilities and treatment plants. (d) Any such public contract for construction with the City which includes payment of interest on retained funds may require a provision whereby the contractor, exclusive of reasonable circumstances beyond the control of the contractor stated in the contract, shall pay a specified penalty for each day exceeding the completion date stated in the contract. (e) Any subcontract for such public project which provides for similar progress payments shall be subject to this section. (Code 1993, § 22.1-56.1; Code 2004, § 74-65; Code 2015, § 21-61; Code 2020, § 21-61)

Source: City of Richmond, Virginia, Code (2026 recodification) and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/va/richmond/codes/code_of_ordinances?nodeId=PTIICICO_CH21PUPR_ARTIICOFOMESOSE_S21-61DECEREFUCECOPEFATICOFetched: 11/8/2026