Common use of Prompt Payment Requirements Clause in Contracts

Prompt Payment Requirements. The Contractor shall make prompt and full payment to the subcontractor(s) of any retainage held by the prime Contractor after the subcontractor’s work is satisfactorily completed. For purposes of this Special Provision, a subcontractor’s work is satisfactorily completed when all the tasks called for in the subcontract have been accomplished, documented, and accepted as required by the contract documents by VDOT. When VDOT has made partial acceptance of a portion of the prime contract, the Department will consider the work of any subcontractor covered by that partial acceptance to be satisfactorily completed. Payment will be made in accordance with the requirements of Section 107.01, Section 109.08, and Section 109.09 of the Specifications. Upon VDOT’s payment of the subcontractor’s portion of the work as shown on the monthly progress estimate and the receipt of payment by the Contractor for such work, the Contractor shall make compensation in full to the subcontractor for that portion of the work satisfactorily completed and accepted by the Department. For the purposes of this Special Provision, payment of the subcontractor’s portion of the work shall mean the Contractor has issued payment in full, less agreed upon retainage, if any, to the subcontractor for that portion of the subcontractor’s work that VDOT paid to the Contractor on the monthly progress estimate. The Contractor shall make payment of the subcontractor’s portion of the work within seven (7) days of the receipt of payment from VDOT in accordance with the requirements of Section 107.01, Section 109.08, and Section 109.09 of the Specifications. If the Contractor fails to make payment for the subcontractor’s portion of the work within the time frame specified herein, the subcontractor shall contact the Responsible Engineer and the Contractor’s bonding company in writing. The bonding company and VDOT will investigate the cause for non-payment and, barring mitigating circumstances that would make the subcontractor ineligible for payment, ensure payment in accordance with the requirements of Section 107.01, Section 109.08, and Section 109.09 of the Specifications. By bidding on this contract, and by accepting and executing this contract, the Contractor agrees to assume these contractual obligations, and to bind the Contractor’s subcontractors contractually to those prompt payment requirements. Nothing contained herein shall preclude the Contractor from withholding payment to the subcontractor in accordance with the terms of the subcontract in order to protect the Contractor from loss or cost of damage due to a breach of agreement by the subcontractor.

Prompt Payment Requirements. The Contractor shall make prompt promptly pay DBEs in accordance with the requirements of the USDOT DBE Program, § 2.2-4354 of the Code of Virginia, and full the Contract, including but not limited to, Sections 107.01, 109.08, 109.09, and 109.10 of the Specifications, and the following. 1. Within seven (7) days after the Contractor’s receipt of amounts paid by the Department for work performed by the DBE, the Contractor shall either pay the DBE for its share of the total payment received attributable to the work the DBE performed; or shall notify the Department and the DBE in writing of the Contractor’s intention to withhold all or a part of the DBE’s payment along with the reasons for nonpayment. 2. In the event that the Contractor has not received payment from the Department for work performed by a DBE under the Contract, the Contractor shall be liable for the entire amount owed to such DBE and shall pay such DBE within sixty (60) days of the receipt of an invoice following satisfactory completion of the work for which the DBE has invoiced. The Contractor shall not be liable for amounts otherwise reducible due to the DBE’s noncompliance with the terms of the Contract. However, in the event that the Contractor withholds all or a part of the amount invoiced by the DBE under the terms of the Contract, the Contractor shall notify the DBE within fifty (50) days of the receipt of such invoice, in writing, of its intention to withhold all or a part of the DBE's payment with the reason for nonpayment, specifically identifying the contractual noncompliance, the dollar amount being withheld, and the lower-tier subcontractor (if any) responsible for the contractual noncompliance. Payment by the Department shall not be a condition precedent to the Contractor’s payment to any DBE, regardless of the subcontractor(s) receipt of any retainage held by payment for amounts owed to the prime Contractor after Contractor. Any provision in a subcontract to the subcontractor’s work is satisfactorily completedcontrary shall be unenforceable. 3. For the purposes of this Special Provision: A. Payment of the DBE’s portion of the work shall mean the Contractor has issued payment in full, a subcontractorless agreed upon retainage, if any, to the DBE for that portion of the DBE’s work that VDOT paid to the Contractor on the monthly progress estimate. B. A DBE’s work is satisfactorily completed when all the tasks called for in the subcontract have been accomplished, documented, and accepted as required by the contract documents by VDOT. the Department. C. When VDOT the Department has made partial acceptance of a portion of the prime contractContract, the Department will consider the work of any subcontractor DBE covered by that partial acceptance is deemed to be satisfactorily completed. Payment will be made in accordance with the requirements of Section 107.01, Section 109.08, and Section 109.09 of the Specifications. Upon VDOT’s payment of the subcontractor’s portion of the work as shown on the monthly progress estimate and the receipt of payment by the Contractor for such work, the Contractor shall make compensation in full to the subcontractor for that portion of the work satisfactorily completed and accepted by the Department. For the purposes of this Special Provision, payment of the subcontractor’s portion of the work shall mean the Contractor has issued payment in full, less agreed upon retainage, if any, to the subcontractor for that portion of the subcontractor’s work that VDOT paid to the Contractor on the monthly progress estimate. The Contractor shall make payment of the subcontractor’s portion of the work within seven (7) days of the receipt of payment from VDOT in accordance with the requirements of Section 107.01, Section 109.08, and Section 109.09 of the Specifications. If the Contractor fails to make payment for the subcontractor’s portion of the work within the time frame specified herein, the subcontractor shall contact the Responsible Engineer and the Contractor’s bonding company in writing. The bonding company and VDOT will investigate the cause for non-payment and, barring mitigating circumstances that would make the subcontractor ineligible for payment, ensure payment in accordance with the requirements of Section 107.01, Section 109.08, and Section 109.09 of the Specifications. By bidding on this contract, and by accepting and executing this contract, the Contractor agrees to assume these contractual obligations, and to bind the Contractor’s subcontractors contractually to those prompt payment requirements. Nothing contained herein shall preclude the Contractor from withholding payment to the subcontractor in accordance with the terms of the subcontract in order to protect the Contractor from loss or cost of damage due to a breach of agreement by the subcontractor.