Common use of DISCOUNTS FOR PROMPT PAYMENT Clause in Contracts

DISCOUNTS FOR PROMPT PAYMENT. a. Discounts for prompt payment will not be considered in the evaluation of bids. However, any offered discount will form a part of the award and will be taken if payment is made within the discount period indicated by the bidder in "Section 2" of the attached proposed contract. b. If a prompt payment discount is offered, the discount period shall be computed from the date of the invoice. If the Contractor has not placed a date on the invoice, the discount period shall be calculated from the date the Accounts Payable Office receives a proper invoice, provided the Accounts Payable Office annotates such invoice with the date of receipt. For the purpose of computing the discount earned, payment shall be considered to have been made on the date that appears on the payment check or, for an electronic funds transfer, if authorized, the specified payment date. When the discount period ends on a Saturday, Sunday, or City observed holiday, such period shall be deemed extended until the following business day.