Indiana § 4-13.6-7-9 Payment of subcontractors and suppliers by division; proration of
claims; disputed claims

Indiana Statutes

§ 4-13.6-7-9 — Payment of subcontractors and suppliers by division; proration of claims; disputed claims

Indiana § 4-13.6-7-9

Art. 13.6STATE PUBLIC WORKS

Ch. 7Bonding, Escrow, and Retainages

This text of Indiana § 4-13.6-7-9 (Payment of subcontractors and suppliers by division; proration of claims; disputed claims) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 4-13.6-7-9 (2026).

Text

(a)If a subcontractor or a supplier files a claim with the division under section 10 of this chapter, and the claim is undisputed, the division shall:

(1)pay the claimant from the amounts retained from the contractor under section 2 of this chapter;

(2)take a receipt for each payment; and

(3)deduct the total amount paid to subcontractors and suppliers from the balance due the contractor.

(b)If there is not a sufficient amount owing to the contractor to pay all subcontractors and suppliers making undisputed claims under section 10 of this chapter, then the division shall prorate the amount withheld from the contractor and shall pay the prorated amount to each subcontractor and supplier entitled to a portion of the amount.

(c)If there is a dispute among the contractor, the subcontracto

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(a) If a subcontractor or a supplier files a claim
with the division under section 10 of this chapter, and the claim is
undisputed, the division shall:
(1) pay the claimant from the amounts retained from the
contractor under section 2 of this chapter;
(2) take a receipt for each payment; and
(3) deduct the total amount paid to subcontractors and suppliers
from the balance due the contractor.
(b) If there is not a sufficient amount owing to the contractor to pay
all subcontractors and suppliers making undisputed claims under
section 10 of this chapter, then the division shall prorate the amount
withheld from the contractor and shall pay the prorated amount to each
subcontractor and supplier entitled to a portion of the amount.
(c) If there is a dispute among the contractor, the subcontractors,
and the suppliers to the funds withheld by the division, the division
shall retain sufficient funds until the dispute is settled and the correct
amount to be paid to each person is determined. When the dispute is
resolved, the division shall make payments to persons making claims
as provided in this section.