Common use of Required Payment Clause in Contracts

Required Payment. Pursuant to Section 2.2-4354 of the code, the contractor covenants and agrees to: (a) Within seven (7) days after receipt of any amounts paid to the contractor under the Contract, (i) pay any subcontractor for its proportionate share of the total payment received from the County attributable to the work under the contract performed by such subcontractor, or (ii) notify the County and the subcontractor in writing of its intention to withhold all or part of the subcontractor’s payment and the reason therefore; (b) Provide its federal employer identification number or social security number, as applicable, before any payment is made to the Contractor under the Contract; and (c) Pay interest at the legal rate or such other rate as may be agreed to in writing by the subcontractor and the contractor on all amounts owed by the contractor that remain unpaid after the seventh (7) day following receipt by the Contractor of payment from the County for work performed by the subcontractor under the Contract, except for amounts withheld pursuant to subparagraph 10a. above. (d) Unless otherwise provided under the terms of the contract, interest shall accrue at the rate of one percent per month. (e) Include in its contract with any and all subcontractors the requirements of a, b, c and d above.