Common use of Prompt Payment to Subcontractors Clause in Contracts

Prompt Payment to Subcontractors. The responder must pay each subcontractor no later than 10 business days of receiving payment for undisputed services provided by the subcontractor. This applies to all subcontractors. The responder must pay the subcontractor interest charges of 1.5 percent per month, or any part of a month, on any undisputed amount not paid within 10 days. The responder must make prompt and full payment of any retainage kept by the prime contractor to the subcontractor within 10 days after the subcontractor's work is satisfactorily completed “Satisfactorily completed” means all tasks identified in the subcontract have been accomplished and documented as required by MnDOT. If MnDOT has incrementally accepted a portion of a prime contract, the work of a subcontractor covered by that acceptance is deemed to be satisfactorily completed. The responder must report payment information as specified in Table C. If the responder fails to comply with prompt payment requirements, including reporting requirements, the responder has materially breached this contract. Furthermore, verification of the responder’s final payment to each subcontractor is a condition of final clearance from MnDOT OCR and final payment from MnDOT. Table C – Required Payment Submissions Within 10 business days of the responder’s receipt of MnDOT payment: • the responder must submit information about individual payments to subcontractors via CRL. When final payment has been made to subcontractors: • the responder must submit information about the responder’s final payment to each subcontractor via CRL. • the responder must submit a Total Payment Affidavit to MnDOT OCR after final payment to all DBE subcontractors. To fax your submission, use ▇▇▇-▇▇▇-▇▇▇▇. To email your submission, attach documents as PDFs and send to ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇@▇▇▇▇▇.▇▇.▇▇ To submit by U.S. mail, address printed documents to MnDOT Office of Civil Rights, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ Boulevard, Mail Stop 170, St. ▇▇▇▇, MN 55155. Within 10 business days of the responder’s receipt of MnDOT or Local Government Unit payment: • the responder must submit a Contractor Payment Form to MnDOT after each payment to a subcontractor. When final payment has been made to all subcontractors: • the responder must submit a Total Payment Affidavit to MnDOT OCR after final payment to all DBE subcontractors. To fax your submission, use ▇▇▇-▇▇▇-▇▇▇▇. To email your submission, attach documents as PDFs and send to ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇@▇▇▇▇▇.▇▇.▇▇ To submit by U.S. mail, address printed documents to MnDOT Office of Civil Rights, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ Boulevard, Mail Stop 170, St. ▇▇▇▇, MN 55155. • Attachment 1 – Counting and Commercially Useful Function • Attachment 2 – Good Faith Efforts Documentation and Standards • Attachment 3 – Administrative Reconsideration • Attachment 4 – Good Cause to Terminate a DBE • Attachment 5 – Information about AASHTOWare Project CRL • Exhibit A – DBE Description of Work and Field Monitoring Report • Exhibit B – GFE Consolidated Form (Parts A-I) • Exhibit C – Contractor Payment Form • Exhibit D – Total Payment Affidavit

Prompt Payment to Subcontractors. The responder must pay each subcontractor no later than 10 business days of receiving payment for undisputed services provided by the subcontractor. This applies to all subcontractors. The responder must pay the subcontractor interest charges of 1.5 percent per month, or any part of a month, on any undisputed amount not paid within 10 days. The responder must make prompt and full payment of any retainage kept by the prime contractor to the subcontractor within 10 days after the subcontractor's work is satisfactorily completed “Satisfactorily completed” means all tasks identified in the subcontract have been accomplished and documented as required by MnDOT. If MnDOT has incrementally accepted a portion of a prime contract, the work of a subcontractor covered by that acceptance is deemed to be satisfactorily completed. The responder must report payment information as specified in Table C. If the responder fails to comply with prompt payment requirements, including reporting requirements, the responder has materially breached this contract. Furthermore, verification of the responder’s final payment to each subcontractor is a condition of final clearance from MnDOT OCR and final payment from MnDOT. Table C – Required Payment Submissions ☐ Design-bid-build administered by MnDOT ☐ Construction Manager/General Contractor administered by MnDOT ☐ Design-build administered by MnDOT ☐ Construction Contract administered by local gov’t unit ☐✔ PT contract administered by MnDOT Within 10 business days of the responder’s receipt of MnDOT payment: •  the responder must submit information about individual payments to subcontractors via CRL. When final payment has been made to subcontractors: •  the responder must submit information about the responder’s final payment to each subcontractor via CRL. •  the responder must submit a Total Payment Affidavit to MnDOT OCR after final payment to all DBE subcontractors. To fax your submission, use ▇▇▇-▇▇▇-▇▇▇▇. To email your submission, attach documents as PDFs and send to ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇@▇▇▇▇▇.▇▇.▇▇ To submit by U.S. mail, address printed documents to MnDOT Office of Civil Rights, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ Boulevard, Mail Stop 170, St. ▇▇▇▇, MN 55155. Within 10 business days of the responder’s receipt of MnDOT or Local Government Unit payment: •  the responder must submit a Contractor Payment Form to MnDOT after each payment to a subcontractor. When final payment has been made to all subcontractors: •  the responder must submit a Total Payment Affidavit to MnDOT OCR after final payment to all DBE subcontractors. To fax your submission, use ▇▇▇-▇▇▇-▇▇▇▇. To email your submission, attach documents as PDFs and send to ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇@▇▇▇▇▇.▇▇.▇▇ To submit by U.S. mail, address printed documents to MnDOT Office of Civil Rights, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ Boulevard, Mail Stop 170, St. ▇▇▇▇, MN 55155. •  Attachment 1 – Counting and Commercially Useful Function •  Attachment 2 – Good Faith Efforts Documentation and Standards •  Attachment 3 – Administrative Reconsideration •  Attachment 4 – Good Cause to Terminate a DBE •  Attachment 5 – Information about AASHTOWare Project CRL •  Exhibit A – DBE Description of Work and Field Monitoring Report •  Exhibit B – GFE Consolidated Form (Parts A-I) •  Exhibit C – Contractor Payment Form •  Exhibit D – Total Payment Affidavit

Prompt Payment to Subcontractors. The responder must pay each subcontractor no later than 10 business days of receiving payment for undisputed services provided by the subcontractor. This applies to all subcontractors. The responder must pay the subcontractor interest charges of 1.5 percent per month, or any part of a month, on any undisputed amount not paid within 10 days. The responder must make prompt and full payment of any retainage kept by the prime contractor to the subcontractor within 10 days after the subcontractor's work is satisfactorily completed “Satisfactorily completed” means all tasks identified in the subcontract have been accomplished and documented as required by MnDOT. If MnDOT has incrementally accepted a portion of a prime contract, the work of a subcontractor covered by that acceptance is deemed to be satisfactorily completed. The responder must report payment information as specified in Table C. If the responder fails to comply with prompt payment requirements, including reporting requirements, the responder has materially breached this contract. Furthermore, verification of the responder’s final payment to each subcontractor is a condition of final clearance from MnDOT OCR and final payment from MnDOT. Table C – Required Payment Submissions Within 10 business days of the responder’s receipt of MnDOT payment: •  the responder must submit information about individual payments to subcontractors via CRL. When final payment has been made to subcontractors: •  the responder must submit information about the responder’s final payment to each subcontractor via CRL. •  the responder must submit a Total Payment Affidavit to MnDOT OCR after final payment to all DBE subcontractors. To fax your submission, use ▇▇▇-▇▇▇-▇▇▇▇. To email your submission, attach documents as PDFs and send to ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇@▇▇▇▇▇.▇▇.▇▇ To submit by U.S. mail, address printed documents to MnDOT Office of Civil Rights, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ Boulevard, Mail Stop 170, St. ▇▇▇▇, MN 55155. Within 10 business days of the responder’s receipt of MnDOT or Local Government Unit payment: •  the responder must submit a Contractor Payment Form to MnDOT after each payment to a subcontractor. When final payment has been made to all subcontractors: •  the responder must submit a Total Payment Affidavit to MnDOT OCR after final payment to all DBE subcontractors. To fax your submission, use ▇▇▇-▇▇▇-▇▇▇▇. To email your submission, attach documents as PDFs and send to ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇@▇▇▇▇▇.▇▇.▇▇ To submit by U.S. mail, address printed documents to MnDOT Office of Civil Rights, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ Boulevard, Mail Stop 170, St. ▇▇▇▇, MN 55155. •  Attachment 1 – Counting and Commercially Useful Function •  Attachment 2 – Good Faith Efforts Documentation and Standards •  Attachment 3 – Administrative Reconsideration •  Attachment 4 – Good Cause to Terminate a DBE •  Attachment 5 – Information about AASHTOWare Project CRL •  Exhibit A – DBE Description of Work and Field Monitoring Report •  Exhibit B – GFE Consolidated Form (Parts A-I) •  Exhibit C – Contractor Payment Form •  Exhibit D – Total Payment Affidavit