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 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.
In accordance with this directive, the Office of County Administration engaged with the Purchasing Department, Harris County Engineering, Harris County Flood Control District, Harris County Toll Road Authority, Department of Economic Equity and Opportunity, the County Attorney’s Office, the Auditor’s Office, and other stakeholders to develop the proposed policy attached to this RCA.
Expected Impact:
Approval of these proposals by Commissioners Court will enable the County to incorporate and implement a consistently retainage policy while also tracking prime contractors’ payments to subcontractors for construction projects.
Alternative Options:
Delay of approval of the proposed retainage and payment policy would delay a more unified and consistent approach on these topics.
County Strategic Plan Goal: 3. Make our economy more inclusive.
County Strategic Plan Objective: N/A
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan: While not focused solely on MWBEs, this policy would positively impact Strategic Initiative J3: Strengthen enabling support and processes for MWBE programming.
Prior Court Action (if any):
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Date |
Agenda Item # |
Action Taken |
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11/13/25 |
100 |
Approval of 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 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. |
Location:
Address (if applicable): N/A
Precinct(s): Countywide
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Anticipated Court Date: 2/12/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department: Jesse Dickerman, Interim County Administrator
Attachments (if applicable): Unified Retainage and Payment Policy for Construction Projects