§ 36-1-12-12 — Final payment; requirements; claims by subcontractors, laborers, or suppliers; disputes

(a) When a public work project is to be
performed, the board shall withhold final payment to the contractor
until the contractor has paid the subcontractors, material suppliers,
laborers, and those furnishing services. However, if there is not a
sufficient sum owed to the contractor to pay those bills, the sum owed
to the contractor shall be prorated in payment of the bills among the
claimants entitled to payment.
(b) To receive payment a subcontractor, material supplier, laborer,
or person furnishing services must file a claim with the board not later
than sixty (60) days after that person performed the last labor,
furnished the last material, or performed the last service as provided in
section 13 of this chapter.
(c) If there is no dispute among the claimants, the board shall pay
the claim from the money due the contractor and deduct the amount of
the claims from the contract price. The board shall take a receipt for
each payment made on a claim.
(d) If there is a dispute among the claimants, the board shall retain
sufficient money to pay the claims until the dispute is settled and the
correct amount is determined. However, the board may make a final
and complete settlement with the contractor after thirty (30) days after
the date of the completion and acceptance of the public work if the
contractor has materially fulfilled all of its obligations under the public
works contract.
(e) If the board receives a claim from a subcontractor or a material
supplier under this section, the board shall withhold the amount of the
claim until the claim is resolved under this section.
(f) A claim form must be signed by an individual from the political
subdivision or agency who is directly responsible for the project and
who can verify:
(1) the quantity of a purchased item; or
(2) the weight or volume of the material applied, in the case of a
road, street, or bridge project.
[Pre-Local Government Recodification Citations: 5-16-1
part; Part new.]
As added by Acts 1981, P.L.57, SEC.38. Amended by
P.L.329-1985, SEC.23; P.L.75-2012, SEC.9.