Agenda - Public Works Committee - 08/15/2011

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ARTICLE 26. Prompt Payment to Subcontractors The Contractor shall pay any subcontractor within ten days of the prime contractor's receipt of payment from the municipality for undisputed services provided by the subcontractor. The contract must require the prime contractor to pay interest of 1 l percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the prime contractor shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from a prime contractor must be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action. ARTICLE 27. Approval of Payment 27.1 The Engineer's approval of any payment requested in an application for payment shall constitute a representation by him to the Owner, based on the Engineer's on -site observations of the Work in progress as an experienced and qualified design professional and on his review of the application for payment and the supporting data, that the Work has progressed to the point indicated; that, to the best of his knowledge, information and belief, the quality of the Work is in accordance with the Contract Documents (subject to an evaluation of the Work as a functioning Project upon completion, to the results of any subsequent tests called for in the Contract Documents and any qualifications stated in his approval); and that the Contractor is entitled to payment of the amount approved. 27.2 The Engineer's approval of final payment shall constitute an additional representation by him to the Owner that the conditions precedent to the Contractor's being entitled to final payment as set forth in the Agreement have been fulfilled. 27.3 The Engineer may refuse to approve the whole or any part of any payment if, in his opinion, he is unable to make such representations to the Owner. He may also refuse to approve any such payment or, because of subsequently discovered evidence or the results of subsequent inspections or tests, nullify any such payment previously approved, to such extent as may be necessary in his opinion to protect the Owner from loss because: 27.3.1 The Work is defective; 27.3.2 Claims have been filed or there is reasonable evidence to suggest such filing thereof; 27.3.3 The Contract Price has been reduced because of modifications or changes; 27.3.4 The Owner has been required to correct defective Work or complete the Work; 27.3.5 Unsatisfactory performance of the Work, including failure to clean up. ARTICLE 28. Project Completion 28.1 Prior to fmal payment, the Contractor may, in writing to the Owner and the Engineer, certify that the entire Project is complete and request that the Engineer issue a certificate of completion. Within a reasonable time thereafter, the Owner, Contractor and Engineer will make an inspection of the Project to determine the status of completion. If the Engineer and Owner do not consider the GC 20