Construction contracts; prohibiting certain entities from withholding retainage for certain contracts. Effective date.

SB 739 prohibits the Oklahoma Department of Transportation (DOT), Oklahoma Turnpike Authority, and railroads operating on privately owned rail property from withholding retainage (a portion of payments held back until project completion) on specific public construction contracts. It also bans retainage withholding for contracts subject to bonds. The bill directly affects contractors working on DOT projects, turnpike construction, and railroad-related projects on private property, removing a financial hold that delayed payments. The law takes effect November 1, 2025, changing current payment practices for these contract types.