Code of Maryland Regulations
Title 21 - STATE PROCUREMENT REGULATIONS
Subtitle 07 - CONTRACT TERMS AND CONDITIONS
Chapter 21.07.01 - Mandatory Contract Provisions - All Contracts (except as provided under COMAR 21.05.07, 21.07.02, and 21.07.03)
Section 21.07.01.18 - Payment of State Obligations

Universal Citation: MD Code Reg 21.07.01.18

Current through Register Vol. 51, No. 19, September 20, 2024

Mandatory provision for all contracts. The following clause is preferred:

"Unless a payment is unauthorized, deferred, delayed, or set-off under COMAR 21.02.07, Payments to the Contractor pursuant to this Contract shall be made no later than 30 days after the State's receipt of a proper invoice from the Contractor.

The Contractor may be eligible to receive late payment interest at the rate of 9%per annum if:

(1) The Contractor submits an invoice for the late payment interest within thirty days after the date of the State's payment of the amount on which the interest accrued; and

(2)A contract claim has not been filed under State Finance and Procurement Article, Title 15, Subtitle 2, Annotated Code of Maryland.

The State is not liable for interest:

(1)Accruing more than one year after the 31st day after the agency receives the proper invoice; or

(2) On any amount representing unpaid interest. Charges for late payment of invoices are authorized only as prescribed by Title 15, Subtitle 1, of the State Finance and Procurement Article, Annotated Code of Maryland, or by the Public Service Commission of Maryland with respect to regulated public utilities, as applicable."

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