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based on the contractor's assessment of the subcontractor's past performance , the likelihood that such performance will continue , and the contractor's ability to rely on other safeguards . The contractor shall notify the subcontractor, in writing , of its determination to withhold more than 5 percent of the progress payment and the reasons for making that determination , and the contractor may not request the release of such retained funds from the local governmental entity. (d ) . After 50-percent completion of the construction services purchased pursuant to the contract, the contractor may present to the local governmental entity a payment request for up to one- half of the retainage held by the local governmental entity. The local governmental entity shall promptly make payment to the contractor, unless the local governmental entity has grounds , pursuant to paragraph (f) , for withholding the payment of retainage. If the local governmental entity makes payment of retainage to the contractor under this paragraph which is attributable to the labor, services , or materials supplied by one or more subcontractors or suppliers , the contractor shall timely remit payment of such retainage to those subcontractors and suppliers . (e) This section does not prohibit a local governmental entity from withholding retainage at a rate less than 10 percent of each progress payment, from incrementally reducing the rate of retainage pursuant to a schedule provided for in the contract, or from releasing at any point all or a portion of any retainage withheld by the local governmental entity which is attributable to the labor, services , or materials supplied by the contractor or by one or more subcontractors or suppliers . If a local governmental entity makes any payment of retainage to the contractor which is attributable to the labor, services , or materials supplied by one or more subcontractors or suppliers , the contractor shall timely remit payment of such retainage to those subcontractors and suppliers . (f) This section does not require the local governmental entity to pay or release any amounts that are the subject of a good faith dispute , the subject of a claim brought pursuant to s . 255 . 05 , or otherwise the subject of a claim or demand by the local governmental entity or contractor. (g) The time limitations set forth in this section for payment of payment requests apply to any payment request for retainage made pursuant to this section . ( h ) Paragraphs (a)-(d ) do not apply to construction services purchased by a local governmental entity which are paid for, in whole or in part, with federal funds and are subject to federal grantor laws and regulations or requirements that are contrary to any provision of the Local Government Prompt Payment Act. ( i ) This subsection does not apply to any construction services purchased by a local governmental entity if the total cost of the construction services purchased as identified in the contract is $200 , 000 or less . 7