Common use of Prompt Pay Clause in Contracts

Prompt Pay. ‌ ADOT shall issue payments to Consultants within 21 calendar days after receipt of complete and accurate PR unless proper objection is made under the statute. The Consultant shall pay their Subconsultants within seven (7) calendar days after receiving payment from ADOT, to the extent of each Subconsultant’s contractual interest in the payment. Incomplete or incorrect PR shall be returned to the Consultant within seven (7) calendar days of receipt by ADOT. The 21-calendar-day payment timeframe shall begin anew upon receipt of the complete and corrected PR. The Department shall not withhold retention on progress payments; however, if satisfactory progress has not been made on the project, the Department may first retain a maximum of 10% of the current and subsequent ▇▇▇▇▇▇▇▇. If unsatisfactory progress continues for a second subsequent month, the Department may, at its sole option, refuse to make progress payment(s) of such sums, which the Department considers necessary. This provision shall not limit the Department’s rights to terminate the Contract for default. The Consultants shall not withhold the Subconsultant’s payment if ADOT has paid the full value of services rendered. Failure by the Consultant to invoice ADOT in accordance with the terms of this Contract and/or pay its Subconsultants in accordance with the Arizona Prompt Pay Law is a material breach of this Contract and the Consultant shall be subject to disqualification in accordance with Section 2.02 of ECS Manual (Revised June 2016). ADOT reserves the right to request that Consultant provides proof of payment to its Subconsultants. The Consultant shall be found to be in breach of this Contract if it executes subcontract agreements with Subconsultants, DBE and non-DBE, which materially change the Prompt Pay requirement. This action may result in termination of the Contract, or any other such remedy as deemed appropriate by the Department. Failure to make prompt partial payment, or prompt final payment including any retention, within the time frames established above, will result in remedies, as the Department deems appropriate, which may include but are not limited to: a. Withholding monthly progress payments; b. Assessing sanctions; c. Liquidated damages; d. Disqualifying the consultant from submitting SOQs, or any other forms of proposals, as non-responsible; e. Cancellation, termination, or suspension of the Contract, in whole or in part. See Section 4.33 (b)(8) of this contract for specific remedies for prompt payment non-compliance.

Prompt Pay. ‌ ADOT shall issue payments to Consultants within 21 calendar days after receipt of complete and accurate PR unless proper objection is made under the statute. The Consultant shall pay their Subconsultants within seven (7) calendar days after receiving payment from ADOT, to the extent of each Subconsultant’s contractual interest in the payment. Incomplete or incorrect PR shall be returned to the Consultant within seven (7) calendar days of receipt by ADOT. The 21-calendar-day payment timeframe shall begin anew upon receipt of the complete and corrected PR. The Department shall not withhold retention on progress payments; however, if satisfactory progress has not been made on the project, the Department may first retain a maximum of 10% of the current and subsequent ▇▇▇▇▇▇▇▇. If unsatisfactory progress continues for a second subsequent month, the Department may, at its sole option, refuse to make progress payment(s) of such sums, which the Department considers necessary. This provision shall not limit the Department’s rights to terminate the Contract for default. The Consultants shall not withhold the Subconsultant’s payment if ADOT has paid the full value of services rendered. Failure by the Consultant to invoice ADOT in accordance with the terms of this Contract and/or pay its Subconsultants in accordance with the Arizona Prompt Pay Law is a material breach of this Contract and the Consultant shall be subject to disqualification in accordance with Section 2.02 of ECS Manual (Revised June 2016). ADOT reserves the right to request that Consultant provides proof of payment to its Subconsultants. The Consultant shall be found to be in breach of this Contract if it executes subcontract agreements with Subconsultants, DBE and non-DBE, which materially change the Prompt Pay requirement. This action may result in termination of the Contract, or any other such remedy as deemed appropriate by the Department. Failure to make prompt partial payment, or prompt final payment including any retention, within the time frames established above, will result in remedies, as the Department deems appropriate, which may include but are not limited to: a. Withholding monthly progress payments; b. Assessing sanctions; c. Liquidated damages; d. Disqualifying the consultant from submitting SOQs, or any other forms of proposals, as non-responsible; e. Cancellation, termination, or suspension of the Contract, in whole or in part. See Section 4.33 (b)(8b) (8) of this contract for specific remedies for prompt payment non-compliance.