The institution must provide the contractor an itemized list, or punch-list, of all deductions. The liquidated damages are credited to the appropriate plant fund accounts in proportion to the original budget. A portion of the retainage may be released to the contractor upon substantial completion of the work and its written acceptance by the Facilities Division. No charge is assessed when OUS holds retainage. These charges are deducted from the final payment to the contractor.
Interest accrues to the benefit of the contractor.
The type of bonds or securities deposited in lieu of retainage must be approved by the Department of Administrative Services. The amount must be in U.S. dollars. When the bank requires drafts to draw money, a draft and instructions must be attached to the letter of credit. Only drafts signed by either the Controller or the Manager of Asset Accounting should be honored. Partial draws must be allowed.