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MTC/City of San Leandro <br />Master Funding Agreement for FY 2021-22 to FY 2030-31 <br />Page 39 <br /> <br /> <br />5. PROMPT PAYMENT OF FUNDS WITHHELD TO SUBCONTRACTORS <br />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 AGENCY’s prime contractor or subcontractor <br />shall return all monies withheld in retention from a subcontractor within 30 days after receiving payment <br />for work satisfactorily completed and accepted including incremental acceptances of portions of the <br />contract work by the agency. Federal regulation (49 CFR 26.29) requires that any delay or <br />postponement of payment over 30 days may take place only for good cause and with the agency’s prior <br />written approval. Any violation of this provision shall subject the violating AGENCY’s prime <br />contractor or subcontractor to the penalties, sanctions, and other remedies specified in Section 7108.5 of <br />the California Business and Professions Code. These requirements shall not be construed to limit or <br />impair any contractual, administrative, or judicial remedies otherwise, available to the prime contractor <br />or subcontractor in the event of a dispute involving late payment, or nonpayment by the prime <br />contractor, deficient subcontract performance, or noncompliance by a subcontractor. This provision <br />applies to both DBE and non-DBE prime contractors and subcontractors. <br />412