ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session
	Senate: GOV DPA 6-1-0-0 | 3^rd Read 16-13-1-0 House:  COM DP 5-2-2-0

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SB 1133: public works; contracts; payment

Sponsor:  Senator Gray, LD 21

Caucus & COW

Overview

Prescribes requirements for payment of contractors and subcontractors for changed or additional work in construction contracts with certain governmental entities.

History

Progress payments may be made to the contractor on the basis of a duly certified and approved estimate of the work performed. Progress payments must be paid within 14 days after the estimate of work is certified and approved.  The estimate of work is deemed approved and certified 7 days after the date of submission unless the owner prepares and issues a specified written finding detailing those items in the estimate that are not approved and certified under the contract. In any delay of payment to the contractor, interest at the rate of 1% per month may be added on the unpaid balance (A.R.S. § 41-2577).

Provisions

1. Permits a contractor directed to perform changed or additional work by ADOT or a governmental entity, pending a final determination of the total amount to be paid, to request payment for the changed or additional work that the contractor completed during the preceding calendar month in monthly pay estimates based on the costs incurred by the contractor. (Sec. 3, 4, 5, 7)

2. Allows a subcontractor directed to perform changed or additional work by the contractor, pending a final determination of the total amount to be paid, to request payment for changed or additional work that the subcontractor completed during the preceding calendar month in monthly pay estimates based on the costs incurred by the subcontractor. (Sec. 3, 4, 5, 7)

3. Requires the person designated in the construction contract to certify and approve the monthly payment estimate to:  

a) Make an interim determination for approval for payment of the costs of changed or additional work; and

b) Certify the amount the person determines to be reasonably justified. (Sec. 3, 4, 5, 7)

4. Allows a party to disagree with the interim determination and assert a claim in accordance with the terms of the construction contract or the agreement between the contractor and subcontractor. (Sec. 3, 4, 5, 7)

5. Stipulates in any action or arbitration relating to payment for changed or additional work, the successful party is awarded reasonable attorney fees and costs. (Sec. 3, 4, 5, 7)

6. Defines construction contract, contractor, cost, subcontractor and work. (Sec. 3, 4, 5, 7)

7. Requires rules adopted by the State Board of Education for procurement of construction projects for school districts to comply with prompt payment requirements, unless external funding has not yet been received. (Sec. 2)

8. Requires ABOR's adopted procurement policies and procedures to be substantially equivalent to prompt payment requirements.

a) Excludes the judicial branch from this requirement. (Sec. 6)

9. Makes technical and conforming changes. (Sec. 1, 3, 4, 5, 6, 7)

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13.                   SB 1133

14. Initials PRB           Page 0 Caucus & COW

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