Walsh Construction Company II LLC 6/7/2021

B. At the option of the Contractor; monies retained under the provisions of RCW 60.28 shall be: 1. Retained in a fund by the Owner, or 2. Deposited by the Owner in an escrow (interest-bearing) account in a bank, mutual saving bank, or savings and loan association (interest on monies so retained shall be paid to the Contractor). Deposits are to be in the name of the Owner and may not be withdrawn without the Owner's written authorization. The Owner will issue a check representing the sum of the monies reserved, payable to the bank or trust company. Such check shall be converted into bonds and securities chosen by the Contractor as the interest accrues. Bank and Contractor will execute an escrow agreement in the form provided by Owner. 3. Released after submission of fully executed retainage bond in the form provided by Owner. C. The Contractor shall designate the option desired at the time the Contract is executed. If the Contractor chooses option 2 (deposit in escrow account), Contractor agrees to assume full responsibility to pay all costs that may accrue from escrow services, brokerage charges or both, and further agrees to assume all risks in connection with the investment of the retained percentages in securities. The City may also, at its option, accept a bond in lieu of retainage. D. Retainage will be released when all of the following conditions are satisfied: 1. Sixty (60) days have elapsed following the completion of all Work specified in the Contract; and 2. The Contractor fulfilled all of all obligations of the Contractor under the Contract, including, but not limited to, the Contractor's furnishing all documentation required by Contract and law; and 3. A release has been obtained from the Washington State Department of Revenue; and 1 4. Affidavits of Wages Paid for the Contractor and all Subcontractors are on file with the Owner (RCW 39.12.040); and 5. A release has been obtained from the Washington State Department of Labor & Industries and the Washington State Employment Security Department; and 6. All claims, as provided by law, filed against the retainage have been resolved. In the event claims are filed and provided the conditions one through five are met, the Contractor will be paid the retained percentage less an amount sufficient to pay any such claims together with a sum determined by the Owner sufficient to pay the cost of claims and attorney's fees. 7. All other conditions required by law are satisfied. Replacement of Reservoir 2 General Conditions WO# UP3658 00 72 13 - 59