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EXHIBIT 9-B Local Assistance Procedures Manual <br />Local Agency DBE Annual Submittal Form <br />(Attachment) <br />Prompt Payment of Withheld Funds to <br />Subcontractors <br />Federal regulation (49 CFR 26.29) requires one of the following three methods be used in federal -aid contracts <br />to ensure prompt and full payment of any retainage kept by the prime contractor or subcontractor to a <br />subcontractor. <br />Please check the box of the method chosen by the local agency to ensure prompt and full payment of <br />any retainage. <br />lohod 1: No retainage will be held by the agency from progress payments due to the prime contractor. <br />Prime contractors and subcontractors are prohibited from holding retainage from subcontractors. Any <br />delay or postponement of payment may take place only for good cause and with the agency's prior <br />written approval. Any violation of these provisions shall subject the violating contractor or subcontractor <br />to the penalties, sanctions, and other remedies specified in Section 7108.5 of the California Business and <br />Professions Code. This requirement shall not be construed to limit or impair any contractual, <br />administrative or judicial remedies, otherwise available to the contractor or subcontractor in the event of a <br />dispute involving late payment or nonpayment by the contractor, deficient subcontractor performance <br />and/or noncompliance by a subcontractor. This clause applies to both DBE and non -DBE subcontractors. <br />NQhod 2: No retainage will be held by the agency from progress payments due the prime contractor. <br />Any retainage kept by the prime contractor or by a subcontractor must be paid in full to the earning <br />subcontractor in 30 days after the subcontractor's work is satisfactorily completed. Any delay or <br />postponement of payment may take place only for good cause and with the agency's prior written <br />approval. Any violation of these provisions shall subject the violating contractor or subcontractor to the <br />penalties, sanctions, and remedies specified in Section 7108.5 of the California Business and Professions <br />Code. This requirement shall not be construed to limit or impair any contractual, administrative or <br />judicial remedies, otherwise available to the contractor or subcontractor in the event of a dispute <br />involving late payment or nonpayment by the contractor, deficient subcontractor performance and/or <br />noncompliance by a subcontractor. This clause applies to both DBE and non -DBE subcontractors. <br />Aghod 3: The agency shall hold retainage from the prime contractor and shall make prompt and regular <br />incremental acceptances of portions, as determined by the agency of the contract work and pay retainage <br />to the prime contractor based on these acceptances. The prime contractor or subcontractor shall return all <br />monies withheld in retention from all subcontractors within 30 days after receiving payment for work <br />satisfactorily completed and accepted including incremental acceptances of portions of the contract work <br />by the agency. Any delay or postponement of payment may take place only for good cause and with the <br />agency's prior written approval. Any violation of these provisions shall subject the violating prime <br />contractor to the penalties, sanctions, and other remedies specified in Section 7108.5 of the California <br />Business and Professions Code. This requirement shall not be construed to limit or impair any contractual, <br />administrative orjudicial remedies otherwise available to the contractor or subcontractor in the event of: a <br />dispute involving late payment or nonpayment by the contractor; deficient subcontractor performance <br />and/or noncompliance by a subcontractor. This clause applies to both DBE and non -DBE subcontractors. <br />Page 9-44 <br />May 28, 2010 OB 10-07 <br />