View source for 109.08 Prompt Payment

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===[[#Prompt Payment | Prompt Payment]]===
Federally funded contracts are required to follow federal requirements for prompt payment of subcontractors under [https://www.ecfr.gov/cgi-bin/text-idx?SID=9dc658b4ab9297039dd46123f40ca39f&mc=true&node=se49.1.26_129&rgn=div8 CFR 49 26.29]  For MDOT let projects the prompt pay requirements and procedures are detailed in [https://mdotcf.state.mi.us/public/dessssp/spss_source/12SP-109A-03.pdf 12SP-109A-03].   


Once subcontracted work is accepted by the Engineer and the work has been paid for, the Contractor is required to make downline payments to all subcontractors and suppliers within the timeframes set by the special provision.   


If a subcontractor makes a claim to the engineer that they have not been paid within the required timeframes, then the Engineer shall follow the procedures for Alleged Prompt Payment Complaints


Additional information on prompt payment: 

* MDOT Prompt Payment S Prov

* [https://www.michigan.gov/documents/mdot/Prompt_Payment_2124A_Instructions_MERS_366314_7.pdf Prompt Payment 2124A form and MERS Instructions]

* [https://mdotcf.state.mi.us/public/webforms/public/2124A.pdf 2124A Form: Prime Contractor Bi-Weekly Statement of Subcontractor/Supplier Payments]


Need prompt pay violation assistance? Contact the Construction Field Service - Subcontract Compliance Specialist at 517-202-3716.


===[[#Alleged Prompt Payment Complaints | Alleged Prompt Payment Complaints]]===

The following flow chart should be used to resolve alleged prompt payment complaints.  Alleged complaints can come to the engineer’s attention by means of a lien notice to a bond company, email, discussion at a progress meeting, or other channels.  The engineer is to request the complainant follow up with a detailed written notice (correspondence or email) to the alleged party.  The written notice is to include the engineer and the prime contractor if the prime contractor is not the alleged party.  Additional support is available by contacting the MDOT CFS Prompt Pay Specialist.


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[[File:CMU 109.08 PPSP FlowChart 04-15-2020.pdf|300px|thumbnail|center|link=http://mdotwiki.state.mi.us/construction/images/2/2d/CMU_109.08_PPSP_FlowChart_04-15-2020.pdf|Process for Alleged Prompt Payment Violation]]



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[[Category:Construction Manual]]
[[Category:Division 1]]
[[Category:Section 109]]