Arizona Administrative Code › Title 7 - EDUCATION › Chapter 2 - STATE BOARD OF EDUCATION › Article 11 - SCHOOL DISTRICT PROCUREMENT › Part XIV - PROCUREMENT OF CONSTRUCTION › Section R7-2-1105 - Progress Payments

Current through Register Vol. 30, No. 28, July 12, 2024
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.