§ 40-22-37 — Contractor shall be paid during progress of work - Retainage - Failure to pay - Rate of interest - Investment of retainage

pay - Rate of interest - Investment of retainage.
If the contractor to whom a contract is let properly performs the work therein designated, the
governing body, at least once in each calendar month during the continuance of such contract
work, shall meet, receive, and consider estimates furnished by the agent, engineer, or architect
acting for the municipality or if not so furnished, then by the contractor, and shall allow such
estimates in an amount of the estimated value of the labor and material furnished upon such
contract, and of the material then upon the ground for use in such contract, subject to retentions
equal to ten percent of each estimate presented until such time as the project is fifty percent
completed, with no further retainage on estimates during the continuance of the contract. The
governing body may, however, upon completion of ninety-five percent of the contract according
to the estimates, pay to the contractor ninety-five percent of the amount retained from previous
estimates. Any amount retained after ninety-five percent completion of the contract shall be paid
to the contractor in such amounts and at such times as are approved by the municipality, upon
estimates by its agent, engineer, or architect or the contractor, with final payment of all moneys
due to the contractor to be made immediately following completion and acceptance of the
project. The governing body, immediately after considering and allowing any such estimate,
shall certify and forward the same to the city auditor or other official having the power to draw
warrants, who forthwith shall draw a warrant upon the proper fund and transmit the same
promptly to the contractor entitled thereto. In case the governing body shall fail or neglect to
receive and allow such estimate or certify any estimate or final payment upon completion and
acceptance or the proper officer required to issue such warrant shall fail or neglect to issue a
warrant as provided herein, for a period of more than thirty days from the date of such estimate
or completion date, then said estimate or final payment, together with any retainage properly
payable, shall draw interest from its date at the rate per annum of two percentage points below
the Bank of North Dakota prime interest rate as set thirty days from the date of such estimate or
completion date until the issuance of a proper warrant therefor. Such interest shall be computed
and added to the face of said estimate, final payment, or retainage by the officer required to
issue such warrant, shall be included in the warrant when drawn, and shall be charged to the
fund from which payment for the improvement is to be made. On the amounts of estimates
retained, as provided herein, the governing board, authorized committee, or public body in
charge of such work may invest or deposit the retained amounts in any financial association or
institution in North Dakota earning interest or dividends for the benefit of the contractor. Any
amounts so invested or deposited shall remain in the name of the governing board, authorized
committee, or public body in charge of such work until final payment of all money due to the
contractor is to be made. Further, no contractor shall use such account in any manner
whatsoever until released and received by the contractor upon completion of the contract.