Common use of Prompt Pay Requirements Clause in Contracts

Prompt Pay Requirements. i. If the Contractor withholds payment of an undisputed amount to its subcontractor, the Department, 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. ii. 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. iii. An act, failure to act, or decision of a Procurement Officer or a representative of the Department concerning a withheld payment between the Contractor and a subcontractor under this section 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 Department and the Contractor in any other proceeding; or c) Result in liability against or prejudice the rights of the Department. iv. The remedies enumerated above are in addition to those provided under COMAR § 21.11.03.13, entitled “Compliance,” with respect to SUBCONTRACTORS THAT HAVE CONTRACTED PURSUANT TO THE MBE PROGRAM. v. To ensure compliance with certified MBE subcontract participation goals, the State may, consistent with COMAR § 21.11.03.13, entitled “Compliance,” 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: 1. Inspecting any relevant records of the Contractor; 2. Inspecting the jobsite; and 3. Interviewing subcontractors and workers. Verification shall include a review of: 1. The Contractor’s monthly report listing unpaid invoices over thirty (30) days old from certified MBE subcontractors and the reason for nonpayment; and 2. 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: 1. Terminate the Contract; 2. Refer the matter to the Office of the Attorney General for appropriate action; or 3. 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. i. 31.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the Department<<typeofAgency>>, 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. ii. 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. iii. 31.3 An act, failure to act, or decision of a Procurement Officer or a representative of the Department <<typeofAgency>> concerning a withheld payment between the Contractor and a subcontractor under this section 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 Department <<typeofAgency>> and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the Department<<typeofAgency>>. iv. 31.4 The remedies enumerated above are in addition to those provided under COMAR § 21.11.03.13, entitled “Compliance,” 21.11.03.13 with respect to SUBCONTRACTORS THAT HAVE CONTRACTED PURSUANT TO THE subcontractors that have contracted pursuant to the MBE PROGRAMprogram. v. 31.5 To ensure compliance with certified MBE subcontract subcontracting participation goals, the State may<<typeofAgency>>may, consistent with COMAR § 21.11.03.13, entitled “Compliance,” 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: 1. i. Inspecting any relevant records of the Contractor; 2ii. Inspecting the jobsite; and 3iii. Interviewing subcontractors and workers. Verification shall include a review of: 1. i. The Contractor’s monthly report listing unpaid invoices over thirty (30) days old from certified MBE subcontractors and the reason for nonpayment; and 2ii. 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 <<typeofAgency>> determines that the Contractor is not in compliance with certified MBE participation goals, then the Department <<typeofAgency>> 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 <<typeofAgency>> determines that the Contractor is in material noncompliance with MBE Contract provisions and refuses or fails to take the corrective action that the Department <<typeofAgency>> requires, then the Department <<typeofAgency>> may: 1. i. Terminate the Contract; 2ii. Refer the matter to the Office of the Attorney General for appropriate action; or 3iii. 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. ‌ i. If the Contractor withholds payment of an undisputed amount to its subcontractor, the Department, 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;verified;‌ b) Suspend all or some of the Contract work without affecting the completion date(s) for the Contract work;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;Contractor;‌ d) Place a payment for an undisputed amount in an interest-bearing escrow account; oror‌ e) Take other or further actions as appropriate to resolve the withheld payment.payment.‌ ii. 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.withheld.‌ iii. An act, failure to act, or decision of a Procurement Officer or a representative of the Department concerning a withheld payment between the Contractor and a subcontractor under this section 31, may not: a) Affect the rights of the contracting parties under any other provision of law;law;‌ b) Be used as evidence on the merits of a dispute between the Department and the Contractor in any other proceeding; oror‌ c) Result in liability against or prejudice the rights of the Department.Department.‌ iv. The remedies enumerated above are in addition to those provided under COMAR § 21.11.03.13, entitled “Compliance,” with respect to SUBCONTRACTORS THAT HAVE CONTRACTED PURSUANT TO THE MBE PROGRAM.PROGRAM.‌ v. To ensure compliance with certified MBE subcontract participation goals, the State may, consistent with COMAR § 21.11.03.13, entitled “Compliance,” take the following measures: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:appropriate:‌ 1. Inspecting any relevant records of the Contractor;Contractor;‌ 2. Inspecting the jobsite; andand‌ 3. Interviewing subcontractors and workers. Verification shall include a review of:of:‌‌ 1. The Contractor’s monthly report listing unpaid invoices over thirty (30) days old from certified MBE subcontractors and the reason for nonpayment; andand‌‌ 2. 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.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.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:may:‌ 1. Terminate the Contract;Contract;‌ 2. Refer the matter to the Office of the Attorney General for appropriate action; oror‌ 3. 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.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.subcontractors.‌

Prompt Pay Requirements. i. 31.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the DepartmentDepartment , 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. ii. 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. iii. 31.3 An act, failure to act, or decision of a Procurement Officer or a representative of the Department concerning a withheld payment between the Contractor and a subcontractor under this section Section 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 Department and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the DepartmentDepartment . iv. 31.4 The remedies enumerated above are in addition to those provided under COMAR § 21.11.03.13, entitled “Compliance,” 21.11.03.13 with respect to SUBCONTRACTORS THAT HAVE CONTRACTED PURSUANT TO THE subcontractors that have contracted pursuant to the MBE PROGRAMprogram. v. 31.5 To ensure compliance with certified MBE subcontract participation goals, the State Department may, consistent with COMAR § 21.11.03.13, entitled “Compliance,” 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: 1. i. Inspecting any relevant records of the Contractor; 2ii. Inspecting the jobsite; and 3iii. Interviewing subcontractors and workers. Verification shall include a review of: 1. i. The Contractor’s monthly report listing unpaid invoices over thirty (30) days old from certified MBE subcontractors and the reason for nonpayment; and 2ii. 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: 1. i. Terminate the Contract; 2ii. Refer the matter to the Office of the Attorney General for appropriate action; or 3iii. 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. i. 31.1 If the Contractor withholds payment of an undisputed amount to its subcontractor, the DepartmentDepartment of Budget and Management, 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. ii. 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. iii. 31.3 An act, failure to act, or decision of a Procurement Officer or a representative of the Department of Budget and Management concerning a withheld payment between the Contractor and a subcontractor under this section Section 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 Department of Budget and Management and the Contractor in any other proceeding; or (c) Result in liability against or prejudice the rights of the DepartmentDepartment of Budget and Management. iv. 31.4 The remedies enumerated above are in addition to those provided under COMAR § 21.11.03.13, entitled “Compliance,” 21.11.03.13 with respect to SUBCONTRACTORS THAT HAVE CONTRACTED PURSUANT TO THE subcontractors that have contracted pursuant to the MBE PROGRAMprogram. v. 31.5 To ensure compliance with certified MBE subcontract participation goals, the State Department of Budget and Management may, consistent with COMAR § 21.11.03.13, entitled “Compliance,” 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: 1. i. Inspecting any relevant records of the Contractor; 2ii. Inspecting the jobsite; and 3iii. Interviewing subcontractors and workers. Verification shall include a review of: 1. i. The Contractor’s monthly report listing unpaid invoices over thirty (30) days old from certified MBE subcontractors and the reason for nonpayment; and 2ii. 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 of Budget and Management determines that the Contractor is not in compliance with certified MBE participation goals, then the Department of Budget and Management 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 of Budget and Management determines that the Contractor is in material noncompliance with MBE Contract provisions and refuses or fails to take the corrective action that the Department of Budget and Management requires, then the Department of Budget and Management may: 1. i. Terminate the Contract; 2ii. Refer the matter to the Office of the Attorney General for appropriate action; or 3iii. 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.