Common use of Prompt Pay Clause in Contracts

Prompt Pay. Owner agrees to pay Contractor within thirty (30) days from the date when Final Completion of all Work has been achieved as deemed by the Owner; provided that Contractor is not in breach of this Agreement at that time. Interest charges for any late payment shall be paid by Owner in accordance with Texas Government Code Section 2251.025. More specifically, the rate of interest that shall accrue on a late payment is the rate in effect on September 1 of Owner’s fiscal year in which the payment becomes due. The said rate in effect on September 1 shall be equal to the sum of one percent (1%); and (2) the prime rate published in the Wall Street Journal on the first day of July of the preceding fiscal year that does not fall on a Saturday or Sunday. In the event that an error appears in an invoice submitted by Contractor, such as an incorrect amount on an invoice or a lack of documentation that is required to be attached to an invoice to evidence the amount claimed to be due, Owner shall notify Contractor of the error not later than the twenty first (21st) day after the date the ▇▇▇▇▇▇▇▇▇▇ County Auditor receives the invoice. If the error is resolved in favor of Contractor, Contractor shall be entitled to receive interest on the unpaid balance of the invoice submitted by Contractor beginning on the date that the payment for the invoice became overdue. If the error is resolved in favor of the County, Contractor shall submit a corrected invoice to the ▇▇▇▇▇▇▇▇▇▇ County Auditor that must be within thirty