Legislation Details

File #: 26-1038    Version: 1 Name:
Type: Policy Status: Passed
File created: 1/30/2026 In control: Commissioners Court
On agenda: 2/12/2026 Final action: 2/12/2026
Title: Request for approval of a unified retainage and payment policy for all construction projects.
Primary Department: County Administration
Primary Department Head/Elected Official: Jesse Dickerman, Interim County Administrator

Secondary Department: N/A
Secondary Department Head/Elected Official: N/A

Regular or Supplemental RCA: Regular RCA

Type of Request: Policy

Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A

MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request

Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item

Request Summary (Agenda Caption):
title
Request for approval of a unified retainage and payment policy for all construction projects.
end

Background and Discussion:

On November 13, 2025, Commissioners Court approved the following motion:

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 fl...

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