Ariz. Admin. Code § R7-2-1105 - Progress Payments
A.
Progress payments may be made by the school district to the contractor on the
basis of a duly certified and approved estimate of the work performed during
the preceding month if the contractor agrees to adhere to the provisions of
A.R.S. §
41-2577(B), (D), and (F). Payment shall be made within 14 days
after the estimate of the work is certified and approved, except that a
percentage of all estimates shall be retained as provided in
R7-2-1104 .
The estimate of the work shall be deemed received by the school district on
submission of the estimate of the work to the school district or a person
designated by the school district for the submission, review or approval of the
estimate of the work. An estimate of the work submitted under this Section
shall be considered approved and certified after seven days from the date of
submission unless before that time the school district or designee prepares and
issues a specific written finding detailing those items in the estimate of the
work that are not approved and certified under the contract or design
professional service contract. The school district may withhold an amount from
the progress payment sufficient to pay the expenses the school district
reasonably expects to incur in correcting the deficiency set forth in the
written finding. No contract for construction or design professional service
contract may materially alter the rights of any contractor, subcontractor,
design professional or material supplier to receive prompt and timely payment
as provided under this Section. On completion and acceptance of separate
divisions of the contract or design professional service contract on which the
price is stated separately in the contract, payment may be made in full
including retained percentages, less deductions, unless a substitute security
has been provided pursuant to
R7-2-1104.
B. Progress payments pursuant to subsection
(A) are authorized for construction services and design professional services
contracts. The requirements of subsection (A) apply only to amounts payable in
a construction services contract for construction and in a contract for design
services and do not apply to amounts payable in a contract for preconstruction
services, finance services, maintenance services, operations services or any
other related services included in the contract.
C. A subcontractor or design professional may
notify the school district, in writing, requesting that the subcontractor or
design professional be notified by the school district in writing within five
days from payment of each progress payment made to the contractor. The
subcontractor's or design professional's request remains in effect for the
duration of the subcontractor's or design professional's work on the
project.
D. If any payment to a
contractor is delayed after the date due, interest shall be paid at the rate of
one percent per calendar month, or a fraction of a calendar month, on such
unpaid balance as may be due.
Notes
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