Common use of Prompt Payment Requirements Clause in Contracts

Prompt Payment Requirements. § 12.6.1 Within seven days after the Architect receives amounts paid for work subject to this Agreement performed by any "subcontractor", as defined in Va. Code § 2.2-4347, the Architect shall take one of the two following actions: a. Pay the subcontractor for the proportionate share of the total payment received from the Owner attributable to the work performed by the subcontractor; or b. Notify the Owner and the subcontractor in writing of the Architect’s intent to withhold all or part of the subcontractor’s payment and the reason for nonpayment. § 12.6.2 The Architect shall provide its Federal Employer Identification Number with each application to the Owner for payment. § 12.6.3 The Architect shall pay interest to any "subcontractor" on all amounts owed by the Architect that remain unpaid after seven days following receipt by Architect of payment from Owner for work performed by such subcontractor relating to this Agreement except as to amounts withheld as allowed by §12.6.1.b. § 12.6.4 Unless otherwise provided under the terms of this Agreement, interest shall accrue at the rate of 1% per month. § 12.6.5 The Architect shall include in its subcontracts a provision requiring each subcontractor to include or otherwise be subject to the same payment and interest requirements with respect to each lower-tier subcontractor. § 12.6.6 No obligation imposed by this §12.6 shall be construed to create any obligation of the Owner. Under Va. Code §2.2-4354, no modification to this Agreement may be made for the purpose of providing reimbursement for the interest charge, and the Architect shall not invoice the Owner for any such charge.