Source: https://www.lawserver.com/law/state/alabama/al-code/alabama_code_39-2-12
Timestamp: 2020-07-10 12:41:34
Document Index: 606259033

Matched Legal Cases: ['§ 39', '§11', '§1', '§1', '§1', '§1', '§1', '§1']

Alabama Code 39-2-12. Partial and final payments of contractors by awarding authorities » LawServer
Alabama Code > Title 39 > Chapter 2 > § 39-2-12
Alabama Code 39-2-12. Partial and final payments of contractors by awarding authorities
Terms Used In Alabama Code 39-2-12
AWARDING AUTHORITY: Any governmental board, commission, agency, body, authority, instrumentality, department, or subdivision of the state, its counties and municipalities. See Alabama Code 39-2-1
person: Natural persons, partnerships, limited liability companies, corporations, and other legal entities. See Alabama Code 39-2-1
PUBLIC WORKS: The construction, installation, repair, renovation, or maintenance of public buildings, structures, sewers, waterworks, roads, curbs, gutters, side walls, bridges, docks, underpasses, and viaducts as well as any other improvement to be constructed, installed, repaired, renovated, or maintained on public property and to be paid, in whole or in part, with public funds or with financing to be retired with public funds in the form of lease payments or otherwise. See Alabama Code 39-2-1
(2) In preparing estimates, the material delivered on the site, materials suitably stored and insured off-site, and preparatory work done may be taken into consideration. If the amount due by the awarding authority is not in dispute and the amount payable is not paid within the above 35-day period, the contractor to whom payment is due shall also be entitled to interest from the awarding authority at the rate assessed for underpayment of taxes under Section 40-1-44(a), on the unpaid balance due. Any agreement to increase the 35-day period for payment after the execution of the contract is not enforceable. Interest payments shall not be due on payments made after the 35-day period because of administrative or processing delays at the close of the fiscal year or delays resulting from official and announced closures by the awarding authority. The provisions in this subsection shall not apply to contracts administered by the Alabama Building Commission, regardless of the source of the funds to be utilized to fulfill the awarding authority’s obligation under the contract.
(3) Except as may be prohibited by Article I, Section 14 of the Constitution of Alabama of 1901, a contractor or awarding authority may file a civil action against the party contractually obligated for the payment or repayment claimed to recover the amount due plus the interest accrued in accordance with this chapter. In addition to the payment of any amounts due plus interest, if applicable, the court shall award the prevailing party reasonable attorneys’ fees, court costs, and reasonable expenses. This provision shall not apply to contracts administered by the Alabama Building Commission, regardless of the source of the funds to be utilized to fulfill the awarding authority’s obligation under the contract.
(j) If the Department of Transportation or a county awarding authority shall determine that there has been overpayment to a contractor on a contract award pursuant to this chapter, the Department of Transportation or the county awarding authority shall provide written notice of the overpayment to the contractor and the contractor shall remit the overpayment to the Department of Transportation or the county awarding authority within 60 days of receipt of the demand. If the contractor fails to remit payment in full of the overpayment within 60 days of receipt of demand, the contractor shall be disqualified from bidding as a prime contractor or from performing work as a subcontractor on any future Department of Transportation contract or county contract for the construction or maintenance of public highways, bridges, or roads until the overpayment is made. The Department of Transportation or county awarding authority shall also be entitled to interest from the contractor at the rate assessed for under payment of taxes under Section 40-1-44 (a) beginning on the 61st day after the contractor’s receipt of demand.
(k) The contract between the awarding authority and contractor shall contain provisions outlining the source of sufficient funds to be utilized to fulfill the awarding authority’s obligations under the contract, including whether the funds are held by the awarding authority at the time of the execution of the contract or whether the funds will become available at a date following the execution of the contract.
(m) In the event of a conflict between the provisions of this section and the provisions of any other section of the Code of Alabama 1975, or any agency’s or department’s rules, regulations, or manuals, this section shall govern.
(Acts 1947, No. 492, p. 338, §11; Acts 1975, No. 951, p. 1988, §1; Acts 1977, No. 508, p. 670; Acts 1978, No. 834, p. 1235; Acts 1980, No. 80-692, p. 1393; Acts 1997, No. 97-225, p. 348, §1; Act 2000-691, p. 1404, §1; Act 2004-419, p. 702, §1; Act 2012-379, p. 997, §§1-3; Act 2014-404, p. 1485, §1.)