§ 2-976. Payment provisions relating to construction contracts.

(a)

Prompt payment of subcontractors. A primary contractor who receives a payment from the parish for work performed under a construction contract shall pay its subcontractor(s) the amount received from the parish attributable to the work performed by the subcontractor(s) in accordance with the provisions of its subcontract, less any retainage, within ten (10) days of receipt of payment from the parish.

(b)

Prompt payment clause. Every construction contract awarded by the parish shall include a clause that requires the primary contractor to timely pay its subcontractor(s) in accordance with subsection (a).

(c)

Penalty for untimely payment. A primary contractor who without cause fails to pay its subcontractor(s) within the deadline established in subsection (a) may be disqualified from consideration for award of a bid contract with the parish for construction work for a period of one year from such deadline pursuant to section 2-914 in chapter 2, article VII, of the Jefferson Parish Code of Ordinances.

(d)

Nothing in this section shall prevent a primary contractor from withholding payment to its subcontractor(s) for reasons provided by law or in the subcontract.

(e)

This section in no way creates any contractual relationship between the parish and any subcontractor or any liability on the parish for a primary contractor's failure to make timely payment to a subcontractor.

(f)

The provisions of this section shall apply prospectively to all contracts for construction work.

(Ord. No. 25205 , § 1, 8-24-16)