State Affairs and Government

CHAPTER 42-11.1
Prompt Payment by Department of Administration

SECTION 42-11.1-3

§ 42-11.1-3. Time period for payment.

(a) All bills shall be paid within thirty (30) working days of receipt of a proper invoice or other contractual dates for periodic payments, except when a contractor has failed to submit a bill in accordance with contractually imposed time frames.

(b) Each contractor shall make payment to subcontractors within ten (10) days of receipt of payment by the state; provided, however, that the contractor may setoff a payment due to a subcontractor by an amount equal to the amount of an unpaid legally enforceable debt owed by the subcontractor to the contractor or any amount which the contractor is entitled to withhold under the terms of the contract entered into by the contractor and subcontractor, or any amount owed by the subcontractor to the contractor by way of a statutory obligation, or enforceable lien, of which the contractor or subcontractor had previous knowledge or notice, or has reason to believe exists.

(c) This section shall not apply to contractors or subcontractors performing work pursuant to a contract awarded by the department of transportation unless the subcontractor provides a payment and performance bond in an amount equal to the contract between the contractor and subcontractor.

History of Section.
(P.L. 1987, ch. 73, § 1; P.L. 1989, ch. 101, § 1; P.L. 1993, ch. 463, § 1.)