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7. PROGR�SS REPORTS (Continued) The Chair recognized Mrs. Janet Allen: I just wondered, I thought when I read about that, I thought it meant you were going to get plumbers to bid on the plumbing, electricians to bid on the electrical work, etc., instead of a contractor handling these things. I thought you were going directly to . Mr. C ighton: That's what we are doing. Mr. B tler: . . to the plumbing contractors, the electrical contractors, as op osed to the general contractors and then subbed out. Keith, on the 1)% cash bond other than the one we are dealing with now, it looks like we are pretty much out of the woods on it. We really have not had to go back against bond yet, have we? Mr. C ighton: No, we have come pretty close where we have negotiated with the bonding company and the matter has been settled. But, our major problem is the high cost of bonding. Some of our contractors, the l rger ones, can get bond, but because of that, we are not getting much ompetition in our bidding. Mr. B tier: Our performance payment bonds were for the full amount of the c ntract price? Now we are talking about a 10% coverage, is that right. Mr. C ighton: Right. Mr. Butler: In your estimation, is that sufficient to . Mr. C ighton: Yes, because of one major thing. We do not make any payments to contractors until they are finished, so if a contractor is going to back out of a contract, he will lose not only what he has in the job, but he will also lose the 10% cash bond. Mr. Butler: Has that been discussed with some of the specialty con- tractors? Mr. C ighton; Yes, we have discussed it with prospective contractors who are interested, and they understand that. Their only problem is the high cost of bonding. Mr. Butler: They feel they can come up with this 10% cash bond? Mr. Cri.ghton; Yes. Mr. Butler: Then, the 1% retainage in terms of dollars, on a $5,000 contr ct, we are talking about a $50.00 retainage. $7,000 contract, $70.0 it really doesn't cover much.