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<br />Cd) Certificates of deposit from a state or national bank
<br />or a savings and loan association insured by the federal deposit
<br />insurance corporation or the federal savings and loan insurance
<br />corporation and having its principal office in this state.
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<br />(2) "Contractor" means any person, company, firm, or
<br />corporation which is a party to a contract with a public entity
<br />to construct, erect, alter, install, or repair any highway,
<br />public building, public work, or public improvement, structure,
<br />or system.
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<br />(3) "Pub 1 i cent i ty"
<br />city and county, town,
<br />subdivision thereof.
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<br />means this state or a county, city,
<br />or district, including any political
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<br />(4) "Subcontractor" means and includes any person, company,
<br />firm, or corporation which is a party to a contract with a
<br />contractor to construct, erect, alter, install, or repair any
<br />highway, public building, public work, or public improvement,
<br />structure, or system and whi ch, in connection therewi th,
<br />furnishes and performs on-site labor with or without furnishing
<br />materials.
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<br />(5) "Substantial completion" means the date when the
<br />construction is sufficiently complete, in accordance with the
<br />contract documents, as modified by any change orders agreed to by
<br />the parties, so that the work or designated portion thereof is
<br />available for use by the owner.
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<br />24-91-103. Public entity - contracts - partial payments. A
<br />public entity awarding a contract exceeding elghty thousand
<br />dollars for the construction, alteration, or repair of any
<br />highway, public building, public work, or public improvement,
<br />structure, or system shall authorize partial payments of the
<br />amount due under such contract at the end of each calendar month,
<br />or as soon thereafter aS1practicable, to the contractor if the
<br />contractor is satisfactorily performing the contract. At least
<br />ninety percent of the calculated value of any work completed
<br />shall be paid until fifty percent of the work required by the
<br />contract has been performed. Thereafter, the public entity shall
<br />pay any of the remaining installments without retaining
<br />additional funds if, in the opinion of the public entity,
<br />satisfacto\-j progress is being made in the work. The withheld
<br />percentage of the contract price of any such work, improvement,
<br />or construction shall be retained until the contract is completed
<br />satisfactorily and finally accepted by the public entity. If the
<br />public entity finds that satisfactory progress is being made in
<br />all phases of the contract, it may, upon written request by the
<br />contractor, authorize payment from the withheld percentage.
<br />Before such payment is made, the public entity shall determine
<br />that satisfactory and substantial reasons exist for the payment
<br />and shall require written approval from any surety furnishing
<br />bonds for the contract work. The contractor shall make partial
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<br />PAGE 2-HOUSE BILL NO. 1239
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