Warden prepares for water reclamation project

Bond approved to hold for contractor

WARDEN - Warden City Council approved a retainage bond to be established for the city's water reclamation facility project.

Public Works Director Mike Thompson told council April 8 the contractor for the project could obtain a retainage bond instead of the city withholding funds.

Such a bond is established through a third party bonding company.

"Generally when we pay a contractor for a job, we hold 5 percent aside until that job is complete and approved as final," City Clerk Kriss Shuler said.

Schuler described it as a security measure to ensure project completion.

If council approves, the company would receive the money from the bond once the project is complete. If there are problems, money could be taken from the bond.

Thompson said after it is finished, council declares the project officially complete and the state verifies the contractor paid all required taxes. If all taxes are paid, the state sends a letter stating the city can release the retainage amount through the bonding company.

TEK Construction is contracted to construct the water reclamation facility project.