The Court took up two separate motions on this item: one to reduce retainage from 5% to 2% for The Gonzalez Group, LP on a new EZ TAG Store construction project, and a separate motion directing the County Administrator to develop a unified retainage and payment policy across county departments.

What it means for you

The Gonzalez Group, LP would have more of its withheld contract funds released during construction of the new Sam Houston East EZ TAG Store; separately, the Court considered creating a countywide standard for how retainage is handled on all construction contracts.

Outcome

Two motions were made and votes were taken on Item 100. A motion was made by Commissioner Garcia, seconded by Commissioner Ellis, to move that Harris County Commissioners Court direct the County Administrator to work with the Purchasing Department, Harris County Engineering, Harris County Flood Control District, Harris County Toll Road Authority, Department of Economic Equity and Opportunity and any other relevant County department to jointly develop, adopt, and implement a unified retainage and payment policy for inclusion in all construction projects. This policy shall align with HCTRA’s current model which includes: • A standard retainage rate of 5% for contracts equal to or exceeding $5 million and 10% for contracts below $5 million, in accordance with Texas Governmental Code Chapters 2252 and 2253. • Progressive and performance-based retainage reduction on qualifying projects, reducing retainage after determination of substantial completion are reach while maintaining owner protection and financial security. • Mandatory certification and documentation demonstrating prime contractors’ timely (within 10 ten days) payment to subcontractors after receipt of County payments, promoting cash flow and financial health to small businesses and vendors. • Exploration and implementation of secure alternatives to cash retainage (such as bonds or interest-bearing accounts), where feasible, to further support contractor and vendor cash flow without diminishing project safe standards. The County Administrator shall establish procedures to ensure consistent oversight and reporting across all departments, with initial policy adoption within 90 days and annual review thereafter. The motion carried by the following vote: