CHF(LEGAL) - PURCHASING AND ACQUISITION: PAYMENT PROCEDURES

Payment Due

  1. The date the district receives the goods under the contract;
  2. The date the performance of the service under the contract is completed; or
  3. The date the district receives an invoice for the goods or services.

Exception

Interest

  1. Compute interest imposed on the district.
  2. Pay the interest at the time payment is made on the principal.
  3. Submit the interest payment with the net amount due for the goods or service.
  1. Require a vendor to petition, bill, or wait an additional day to receive the interest due.
  2. Require a vendor or subcontractor to agree to waive the vendor's or subcontractor's right to interest as a condition of the contract.

Early Payment Discount

Exceptions

  1. There is a bona fide dispute between the district and a vendor, contractor, subcontractor, or supplier about the goods delivered or the service performed that causes the payment to be late;
  2. There is a bona fide dispute between a vendor and a subcontractor or between a subcontractor and its supplier about the goods delivered or the services performed that causes the payment to be late;
  3. The terms of a federal contract, grant, regulation, or statute prevent the district from making a timely payment with federal funds; or
  4. The invoice is not mailed to the person to whom it is addressed in strict accordance with any instruction on the purchase order relating to the payment.

Disputed Payment

Vendor Remedy for Nonpayment

  1. Required to supply further labor, services, or materials until the vendor is paid the amount provided for under Government Code Chapter 2251, plus costs for demobilization and remobilization; or
  2. Responsible for damages resulting from suspending work if the district with which the vendor has the contract has not notified the vendor in writing before performance is suspended that payment has been made or that a bona fide dispute for payment exists.

Bland ISD

CHF(LEGAL)-P

UPDATE 112

DATE ISSUED: 12/13/2018