§ 319-9. Subcontractors.

This section shall apply to and govern the payment process for all subcontractors:

(a)

Except as otherwise provided in Sections 1311.25 through 1311.32 of the Ohio Revised Code, or any successor statute, contractors that engage subcontractors to perform part of the work on a contract with the city shall pay subcontractors for satisfactory work in a timely fashion. A payment is timely if it is mailed, delivered or transferred to the subcontractor no later than ten (10) days after the contractor's receipt of any payment from the city.

(b)

If a subcontractor is not paid in a timely fashion, the contractor shall pay interest on the balance due from the eleventh (11th) day after the contractor's receipt of any payment from the city, at the rate specified herein, unless a bona fide dispute exists between the contractor and such subcontractor.

(c)

Subcontractors receiving payment as described herein shall pay their subcontractors, and be liable for interest on late payments, in the same manner as contractors are required to pay subcontractors in this section.

(d)

All contractors shall promptly render payment to all subcontractors on a contract. Each contractor shall provide with each invoice to the city on each contract, beginning with the second invoice, proof of payment to subcontractors, in form and content approved by the director of finance, evidencing that all subcontractors have been duly paid out of the proceeds of the contractor's payments from the city under the contract, unless a bona fide dispute, documented in writing exists between the contractor and the unpaid sub-contractor.

(e)

Notwithstanding the payment procedure otherwise set out in Section 319-7, or the provisions of any definition contained in this chapter, the processing of final pay requests on construction, reconstruction and remodeling projects shall be as follows:

(1)

Time elapsed awaiting receipt by the city of a final release from a contractor with respect to a final payment, time elapsed in publication for and holding of final settlement pursuant to Sections 1311.25 through 1311.32 of the Ohio Revised Code or successor statute or time elapsed in the expending authority's or director of finance's seeking of legal advice or guidance from the department of law shall not count in the calculation of the interest accrual date as set out herein. Receipt by the expending authority of a final payment request invoice with all other conditions precedent required by the definition of complete and responsive invoice satisfied and an invoice date stated will commence the interest accrual date for a final payment based on the invoice date. With the exception of those steps set out in subsection (2) hereof, and except as provided in Section 319-19, all steps necessary to process a final payment, subsequent to the receipt by the expending authority of the complete and responsive invoice for such final payment, shall count as part of the interest accrual date calculation.

(2)

With respect to the tolling of the interest accrual date calculation for such final payment the time elapsed in publishing for and holding final settlement pursuant to Sections 1311.25 through 1311.32 of the Ohio Revised Code or successor statute, the time elapsed from the tender by the city to the contractor of a final release on the final payment until the return of such release to the expending authority, and the time elapsed in the expending authority's or director of finance's seeking of legal advice or guidance from the department of law shall not count in the calculation of the interest accrual date as set out herein.

(Ordained by Ord. No. 297-2002, eff. Sept. 18, 2002)