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in Virginia
RESOLUTION NO.
A RESOLUTION:
PRESENTED February 27 ~ 1990
90-29 ADOPTED February 27, 1990
AMENDING THE TOWN OF LEESBURG PURCHASING POLICY MANUAL
WHEREAS, effective January 1, 1990 SECTION 11-56.1 of the 1950 Code of Virginia, as
amended, requires governments contracting for construction contracts totalling $200,000.00 or more
must include in their bid documents an option for the contractor to use an escrow account procedure
for retainage of funds, if a retainage procedure is required; and
WHEREAS, in order to comply with this Virginia Code requirement an amendment to the
Town of Leesburg Purchasing Policy is necessary:
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
The Town of Leesburg Purchasing Policy is hereby amended to include the following section.
SECTION 8.1-21.1. Deposit of certain retained funds on certain contracts with the
To,vII.
A. When contracting directly with contractors for contracts of $200,000.00 or more for construction
of highwa~'s, roads, streets, bridges, oarking lots, demolition, clearing, grading, excavating, oaring, Bile
driving, miscellaneous drainage structures, and the installation of water, gas, sewer lines and pumping
stations where portions of the contract price are to be retained, shail include in the Bid Proposal an
option for the contractor to use an escrow account procedure for utilization of the Town's retainage
funds by so indicating in the proposai documents. In the event the contractor elects to use the escrow
account procedure, the "Escrow Agreement" form included in the Bid Proposai and Contract shall be
executed and submitted to the Town within fifteen calendar days after notification. If the "Escrow
Agreement" form is not submitted within the fifteen-day period, the contractor shall forfeit his rights
to the use of the escrow account procedure.
B. In order to have retained funds paid to an escrow agent~ the contractor, the escrow agent, and
the surety shall execute an "Escrow Agreement" form. The contractor's escrow agent shall be a trust
company, bank or savings institution with its principal office located in the Commonwealth. The
"Escrow Agreement" and all regulations promulgated by the Town entering into the contract shall be
substantially the same as that used by the Commonwealth of Virginia Department of Transportation.
C. This section shall not apply to contracts for construction of railroads, public transit systems,
runways, dams, foundations, installation or maintenance of power systems for the generation and
primary and seconda .ry distribution of electric current ahead of the customer's meter, the installation
or maintenance of telephone, telegraph or signal .systems for public utilities and the construction or
maintenance of solid waste or re.cycling facilities and treatment plants.
D. Any such public contract for construction, which includes payment of interest on retained funds,
may require a provision whereby the contractor, exclusive of reasonable circumstances beyond the
control of the contractor stated in the contract~ shall pay a specified penal .ty for each day exceeding the
completion date stated in the contract.
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RESOLUTION: AMENDING THE TOWN OF LEESBURG PURCHASING POLICY MANUAL
E. Any subcontract for such public pro. iect which provides for similar orogress payments shall be
sub. iect to the provisions of this section.
PASSED this 27th day of February
1990.
Robert E. Sevila, Mayor
Town of Leesburg
ATTEST:
Clerk of C~cil