Section 10261.5 Of Article 8. Modifications; Performance; Payment From California Public Contract Code >> Division 2. >> Part 2. >> Chapter 1. >> Article 8.
10261.5
. (a) Any state agency which fails to make any progress
payment within 30 days after receipt of the payment request from a
contractor on a construction contract for an undisputed payment
request, which was properly submitted by the contractor to the
agency, shall pay interest to the contractor equivalent to the legal
rate set forth in subdivision (a) of Section 685.010 of the Code of
Civil Procedure. Any state agency which independently calculates the
amount due on a progress payment and which fails to make a progress
payment within 30 days of the first submittal of the estimate for
each contract by the engineer, shall pay interest to the contractor
equivalent to the legal rate set forth in subdivision (a) of Section
685.010 of the Code of Civil Procedure. In the event that the payment
is not made within 30 days of receipt of the contractor's request or
the first submittal by the engineer, and the Controller has
processed the payment within 14 days of receipt of the request or
submittal, the contracting state agency shall pay interest to the
contractor equivalent to the legal rate set forth in subdivision (a)
of Section 685.010 of the Code of Civil Procedure. In the event that
the payment is not made within 30 days of receipt of the contractor's
request or the first submittal by the engineer, and the contracting
state agency has processed the payment within 16 days after receipt
of the request or submittal, the Controller shall pay interest as
provided in Section 685.010 of the Code of Civil Procedure.
For purposes of this section, a payment request shall be
considered properly executed if funds are available for payment of
the payment request, and payment is not delayed due to an audit
inquiry by the Controller.
(b) Upon receipt of a payment request, each agency shall require:
(1) That each payment request be reviewed as soon as practicable
after receipt for the purpose of determining that a payment request
is a proper payment request.
(2) Any payment request determined not to be a proper payment
request suitable for payment shall be returned as soon as
practicable, but not later than seven days, after receipt, specifying
the reasons that the payment request is not a proper payment
request.
(3) The number of days available to a state agency to make a
timely payment of payment request without incurring interest shall be
reduced by the number of days by which an agency exceeds the
requirements of paragraph (2).