Section 3: Prompt Payment - Wholly State Funded Contracts
Anchor: #b110013Policy
Pay the contractors no earlier than ten calendar days or later than 30 calendar days following the month which work was completed and accepted.
Anchor: #b110016Contractor Complaints
Upon receipt of a contractor complaint, determine if payment has been made for the work in question. If payment has been made, notify the contractor that payment has been made and work may not be suspended. Ensure the notice is received by the contractor prior to the 20th calendar day from the date of the contractor’s written notice.
If payment has not been made and there is no dispute involved, pay the contractor as soon as possible but no later than the 20th calendar day from the date of the prime contractor’s written notice.
If payment has not been made due to a dispute, notify the prime contractor that a bona fide dispute exists and include the specific reasons for nonpayment. Ensure that the contractor receives the notice prior to the 20th calendar day from the date of the contractor’s written notice. Provide the contractor with a reasonable opportunity to cure areas of noncompliance or offer reasonable compensation for areas where noncompliance cannot be achieved in accordance with the contract. Do not waive the contractor’s responsibility to comply with the contract.
Anchor: #b110017Subcontractor Complaints
Upon receipt of a subcontractor complaint, forward notification to the contractor and provide the subcontractor with the contractor’s bonding information. Advise the contractor that work may be suspended and future estimates withheld for noncompliance with the contract prompt payment requirements.
If there is no payment dispute and the subcontractor nonpayment is due to the department not making payment to the contractor, pay the contractor as soon as possible but no later than 20 calendar days from the date of the subcontractor’s written notice. If the subcontractor nonpayment is due to the department withholding payment from the contractor as a result of a bona fide dispute, notify both the contractor and subcontractor within 15 calendar days of the date of the subcontractor’s written notice that a bona fide dispute exists and include the specific reasons for nonpayment.