Common use of Prompt Pay Requirements Clause in Contracts

Prompt Pay Requirements. 27.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the County, at its option and in its sole discretion, may take one or more of the following actions: (a) Not process further payments to the Contractor until payment to the subcontractor is verified; (b) Suspend all or some of the Contract work without affecting the completion date(s) for the Contract work; (c) Pay or cause payment of the undisputed amount to the subcontractor from monies otherwise due or that may become due to the Contractor; (d) Place a payment for an undisputed amount in an interest-bearing escrow account; or (e) Take other or further actions as appropriate to resolve the withheld payment. 27.2 An “undisputed amount” means an amount owed by the Contractor to a subcontractor for which there is no good faith dispute. Such “undisputed amounts” include, without limitation: (a) retainage which had been withheld and is, by the terms of the agreement between the Contractor and subcontractor, due to be distributed to the subcontractor; and (b) an amount withheld because of issues arising out of an agreement or occurrence unrelated to the agreement under which the amount is withheld. 27.3 An act, failure to act, or decision of a Procurement Officer or a representative of the County concerning a withheld payment between the Contractor and a subcontractor under this Section 27, may not: (a) Affect the rights of the contracting parties under any other provision of law; (b) Be used as evidence on the merits of a dispute between the County and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the County.

Prompt Pay Requirements. 27.1 23.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the County, at its option and in its sole discretion, may take one or more of the following actions: (a) Not process further payments to the Contractor until payment to the subcontractor is verified; (b) Suspend all or some of the Contract work without affecting the completion date(s) for the Contract work; (c) Pay or cause payment of the undisputed amount to the subcontractor from monies otherwise due or that may become due to the Contractor; (d) Place a payment for an undisputed amount in an interest-bearing escrow account; or (e) Take other or further actions as appropriate to resolve the withheld payment. 27.2 23.2 An “undisputed amount” means an amount owed by the Contractor to a subcontractor for which there is no good faith dispute. Such “undisputed amounts” include, without limitation: : (a) retainage which had been withheld and is, by the terms of the agreement between the Contractor and subcontractor, due to be distributed to the subcontractor; and (b) an amount withheld because of issues arising out of an agreement or occurrence unrelated to the agreement under which the amount is withheld. 27.3 23.3 An act, failure to act, or decision of a Procurement Officer or a representative of the County concerning a withheld payment between the Contractor and a subcontractor under this Section 2723, may not: (a) Affect the rights of the contracting parties under any other provision of law; (b) Be used as evidence on the merits of a dispute between the County and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the County.

Prompt Pay Requirements. 27.1 23.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the County, at its option and in its sole discretion, may take one or more of the following actions: (a) Not process further payments to the Contractor until payment to the subcontractor is verified; (b) Suspend all or some of the Contract work without affecting the completion date(s) for the Contract work; (c) Pay or cause payment of the undisputed amount to the subcontractor from monies otherwise due or that may become due to the Contractor; (d) Place a payment for an undisputed amount in an interest-interest- bearing escrow account; or (e) Take other or further actions as appropriate to resolve the withheld payment. 27.2 23.2 An “undisputed amount” means an amount owed by the Contractor to a subcontractor for which there is no good faith dispute. Such “undisputed amounts” include, without limitation: (a) retainage which had been withheld and is, by the terms of the agreement between the Contractor and subcontractor, due to be distributed to the subcontractor; and (b) an amount withheld because of issues arising out of an agreement or occurrence unrelated to the agreement under which the amount is withheld. 27.3 23.3 An act, failure to act, or decision of a Procurement Officer or a representative of the County concerning a withheld payment between the Contractor and a subcontractor under this Section 2723, may not: (a) Affect the rights of the contracting parties under any other provision of law; (b) Be used as evidence on the merits of a dispute between the County and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the County.

Prompt Pay Requirements. 27.1 31.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the CountyState, at its option and in its sole discretion, may take one or more of the following actions: (a) Not process further payments to the Contractor until payment to the subcontractor is verified; (b) Suspend all or some of the Contract PA work without affecting the completion date(s) for the Contract PA work; (c) Pay or cause payment of the undisputed amount to the subcontractor from monies otherwise due or that may become due to the Contractor; (d) Place a payment for an undisputed amount in an interest-bearing escrow account; or (e) Take other or further actions as appropriate to resolve the withheld payment. 27.2 31.2 An “undisputed amount” means an amount owed by the Contractor to a subcontractor for which there is no good faith dispute. Such “undisputed amounts” include, without limitation: (a) retainage which had been withheld and is, by the terms of the agreement between the Contractor and subcontractor, due to be distributed to the subcontractor; and (b) an amount withheld because of issues arising out of an agreement or occurrence unrelated to the agreement under which the amount is withheld. 27.3 31.3 An act, failure to act, or decision of a Procurement Officer or a representative of the County State concerning a withheld payment between the Contractor and a subcontractor under this Section 2731, may not: (a) Affect the rights of the contracting parties under any other provision of law; (b) Be used as evidence on the merits of a dispute between the County State and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the CountyState. 31.4 The remedies enumerated above are in addition to those provided under COMAR 21.11.03.13 with respect to subcontractors that have contracted pursuant to the MBE program. 31.5 To ensure compliance with certified MBE subcontract participation goals, the State may, consistent with COMAR 21.11.03.13, take the following measures: (a) Verify that the certified MBEs listed in the MBE participation schedule actually are performing work and receiving compensation as set forth in the MBE participation schedule. This verification may include, as appropriate: i. Inspecting any relevant records of the Contractor; ii. Inspecting the jobsite; and iii. Interviewing subcontractors and workers. Verification shall include a review of: i. The Contractor’s monthly report listing unpaid invoices over thirty (30) days old from certified MBE subcontractors and the reason for nonpayment; and ii. The monthly report of each certified MBE subcontractor, which lists payments received from the Contractor in the preceding thirty (30) days and invoices for which the subcontractor has not been paid. (b) If the State determines that the Contractor is not in compliance with certified MBE participation goals, then the State will notify the Contractor in writing of its findings, and will require the Contractor to take appropriate corrective action. Corrective action may include, but is not limited to, requiring the Contractor to compensate the MBE for work performed as set forth in the MBE participation schedule. (c) If the State determines that the Contractor is in material noncompliance with MBE Contract provisions and refuses or fails to take the corrective action that the State requires, then the State may: i. Terminate the Contract; ii. Refer the matter to the Office of the Attorney General for appropriate action; or iii. Initiate any other specific remedy identified by the Contract, including the contractual remedies required by any applicable laws, regulations, and directives regarding the payment of undisputed amounts. (d) Upon completion of the Contract, but before final payment or release of retainage or both, the Contractor shall submit a final report, in affidavit form under the penalty of perjury, of all payments made to, or withheld from, MBE subcontractors.

Prompt Pay Requirements. 27.1 31.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the CountyDepartment, at its option and in its sole discretion, may take one or more of the following actions: (a) Not process further payments to the Contractor until payment to the subcontractor is verified; (b) Suspend all or some of the Contract work without affecting the completion date(s) for the Contract work; (c) Pay or cause payment of the undisputed amount to the subcontractor from monies otherwise due or that may become due to the Contractor; (d) Place a payment for an undisputed amount in an interest-bearing escrow account; or (e) Take other or further actions as appropriate to resolve the withheld payment. 27.2 31.2 An “undisputed amount” means an amount owed by the Contractor to a subcontractor for which there is no good faith dispute. Such “undisputed amounts” include, without limitation: (a) retainage which had been withheld and is, by the terms of the agreement between the Contractor and subcontractor, due to be distributed to the subcontractor; and (b) an amount withheld because of issues arising out of an agreement or occurrence unrelated to the agreement under which the amount is withheld. 27.3 31.3 An act, failure to act, or decision of a Procurement Officer or a representative of the County Department concerning a withheld payment between the Contractor and a subcontractor under this Section 27section 31, may not: (a) Affect the rights of the contracting parties under any other provision of law; (b) Be used as evidence on the merits of a dispute between the County Department and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the CountyDepartment. 31.4 The remedies enumerated above are in addition to those provided under COMAR 21.11.03.13 with respect to subcontractors that have contracted pursuant to the MBE program. 31.5 To ensure compliance with certified MBE subcontract participation goals, the Department may, consistent with COMAR 21.11.03.13, take the following measures: (a) Verify that the certified MBEs listed in the MBE participation schedule actually are performing work and receiving compensation as set forth in the MBE participation schedule. This verification may include, as appropriate: i. Inspecting any relevant records of the Contractor; ii. Inspecting the jobsite; and iii. Interviewing subcontractors and workers. Verification shall include a review of: i. The Contractor’s monthly report listing unpaid invoices over thirty (30) days old from certified MBE subcontractors and the reason for nonpayment; and ii. The monthly report of each certified MBE subcontractor, which lists payments received from the Contractor in the preceding thirty (30) days and invoices for which the subcontractor has not been paid. (b) If the Department determines that the Contractor is not in compliance with certified MBE participation goals, then the Department will notify the Contractor in writing of its findings and will require the Contractor to take appropriate corrective action. Corrective action may include, but is not limited to, requiring the Contractor to compensate the MBE for work performed as set forth in the MBE participation schedule. (c) If the Department determines that the Contractor is in material noncompliance with MBE Contract provisions and refuses or fails to take the corrective action that the Department requires, then the Department may: i. Terminate the Contract; ii. Refer the matter to the Office of the Attorney General for appropriate action; or iii. Initiate any other specific remedy identified by the Contract, including the contractual remedies required by any applicable laws, regulations, and directives regarding the payment of undisputed amounts. (d) Upon completion of the Contract, but before final payment or release of retainage or both, the Contractor shall submit a final report, in affidavit form under the penalty of perjury, of all payments made to, or withheld from, MBE subcontractors.

Prompt Pay Requirements. 27.1 32.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the CountyDepartment, at its option and in its sole discretion, may take one or more of the following actions: (a) Not process further payments to the Contractor until payment to the subcontractor is verified; (b) Suspend all or some of the Contract work without affecting the completion date(s) for the Contract work; (c) Pay or cause payment of the undisputed amount to the subcontractor from monies otherwise due or that may become due to the Contractor; (d) Place a payment for an undisputed amount in an interest-bearing escrow account; or (e) Take other or further actions as appropriate to resolve the withheld payment. 27.2 32.2 An “undisputed amount” amount means an amount owed by the Contractor to a subcontractor for which there is no good faith dispute. Such “undisputed amounts” amounts include, without limitation: (a) retainage which had been withheld and is, by the terms of the agreement between the Contractor and subcontractor, due to be distributed to the subcontractor; and (b) an amount withheld because of issues arising out of an agreement or occurrence unrelated to the agreement under which the amount is withheld. 27.3 32.3 An act, failure to act, or decision of a Procurement Officer or a representative of the County Department concerning a withheld payment between the Contractor and a subcontractor under this Section 27section 31, may not: (a) Affect the rights of the contracting parties under any other provision of law; (b) Be used as evidence on the merits of a dispute between the County Department and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the CountyDepartment. 32.4 The remedies enumerated above are in addition to those provided under COMAR 21.11.