§ 2.2-4354. Payment clauses to be included in contracts.
Any contract awarded by any state agency, or any contract awarded by anyagency of local government in accordance with § 2.2-4352, shall include:
1. A payment clause that obligates the contractor to take one of the twofollowing actions within seven days after receipt of amounts paid to thecontractor by the state agency or local government for work performed by thesubcontractor under that contract:
a. Pay the subcontractor for the proportionate share of the total paymentreceived from the agency attributable to the work performed by thesubcontractor under that contract; or
b. Notify the agency and subcontractor, in writing, of his intention towithhold all or a part of the subcontractor's payment with the reason fornonpayment.
2. A payment clause that requires (i) individual contractors to provide theirsocial security numbers and (ii) proprietorships, partnerships, andcorporations to provide their federal employer identification numbers.
3. An interest clause that obligates the contractor to pay interest to thesubcontractor on all amounts owed by the contractor that remain unpaid afterseven days following receipt by the contractor of payment from the stateagency or agency of local government for work performed by the subcontractorunder that contract, except for amounts withheld as allowed in subdivision 1.
4. An interest rate clause stating, "Unless otherwise provided under theterms of this contract, interest shall accrue at the rate of one percent permonth."
Any such contract awarded shall further require the contractor to include ineach of its subcontracts a provision requiring each subcontractor to includeor otherwise be subject to the same payment and interest requirements withrespect to each lower-tier subcontractor.
A contractor's obligation to pay an interest charge to a subcontractorpursuant to the payment clause in this section shall not be construed to bean obligation of the state agency or agency of local government. A contractmodification shall not be made for the purpose of providing reimbursement forthe interest charge. A cost reimbursement claim shall not include any amountfor reimbursement for the interest charge.
(1990, c. 824, § 11-62.11; 1992, c. 110; 2001, c. 844.)
§ 2.2-4354. Payment clauses to be included in contracts.
Any contract awarded by any state agency, or any contract awarded by anyagency of local government in accordance with § 2.2-4352, shall include:
1. A payment clause that obligates the contractor to take one of the twofollowing actions within seven days after receipt of amounts paid to thecontractor by the state agency or local government for work performed by thesubcontractor under that contract:
a. Pay the subcontractor for the proportionate share of the total paymentreceived from the agency attributable to the work performed by thesubcontractor under that contract; or
b. Notify the agency and subcontractor, in writing, of his intention towithhold all or a part of the subcontractor's payment with the reason fornonpayment.
2. A payment clause that requires (i) individual contractors to provide theirsocial security numbers and (ii) proprietorships, partnerships, andcorporations to provide their federal employer identification numbers.
3. An interest clause that obligates the contractor to pay interest to thesubcontractor on all amounts owed by the contractor that remain unpaid afterseven days following receipt by the contractor of payment from the stateagency or agency of local government for work performed by the subcontractorunder that contract, except for amounts withheld as allowed in subdivision 1.
4. An interest rate clause stating, "Unless otherwise provided under theterms of this contract, interest shall accrue at the rate of one percent permonth."
Any such contract awarded shall further require the contractor to include ineach of its subcontracts a provision requiring each subcontractor to includeor otherwise be subject to the same payment and interest requirements withrespect to each lower-tier subcontractor.
A contractor's obligation to pay an interest charge to a subcontractorpursuant to the payment clause in this section shall not be construed to bean obligation of the state agency or agency of local government. A contractmodification shall not be made for the purpose of providing reimbursement forthe interest charge. A cost reimbursement claim shall not include any amountfor reimbursement for the interest charge.
(1990, c. 824, § 11-62.11; 1992, c. 110; 2001, c. 844.)
§ 2.2-4354. Payment clauses to be included in contracts.
Any contract awarded by any state agency, or any contract awarded by anyagency of local government in accordance with § 2.2-4352, shall include:
1. A payment clause that obligates the contractor to take one of the twofollowing actions within seven days after receipt of amounts paid to thecontractor by the state agency or local government for work performed by thesubcontractor under that contract:
a. Pay the subcontractor for the proportionate share of the total paymentreceived from the agency attributable to the work performed by thesubcontractor under that contract; or
b. Notify the agency and subcontractor, in writing, of his intention towithhold all or a part of the subcontractor's payment with the reason fornonpayment.
2. A payment clause that requires (i) individual contractors to provide theirsocial security numbers and (ii) proprietorships, partnerships, andcorporations to provide their federal employer identification numbers.
3. An interest clause that obligates the contractor to pay interest to thesubcontractor on all amounts owed by the contractor that remain unpaid afterseven days following receipt by the contractor of payment from the stateagency or agency of local government for work performed by the subcontractorunder that contract, except for amounts withheld as allowed in subdivision 1.
4. An interest rate clause stating, "Unless otherwise provided under theterms of this contract, interest shall accrue at the rate of one percent permonth."
Any such contract awarded shall further require the contractor to include ineach of its subcontracts a provision requiring each subcontractor to includeor otherwise be subject to the same payment and interest requirements withrespect to each lower-tier subcontractor.
A contractor's obligation to pay an interest charge to a subcontractorpursuant to the payment clause in this section shall not be construed to bean obligation of the state agency or agency of local government. A contractmodification shall not be made for the purpose of providing reimbursement forthe interest charge. A cost reimbursement claim shall not include any amountfor reimbursement for the interest charge.
(1990, c. 824, § 11-62.11; 1992, c. 110; 2001, c. 844.)
