§ 38:2191 — Payments under contract

Louisiana § 38:2191

• Jurisdiction: Louisiana
• Title 38: Public Contracts, Works and Improvements

Text

§2191. Payments under contract
A. All public entities shall promptly pay all obligations including approved change
orders, arising under public contracts when the obligations become due and payable under
the contract. All progressive stage payments and final payments shall be paid when they
respectively become due and payable under the contract.
B.(1) Any public entity failing to make any progressive stage payment within forty-five days following receipt of a certified request for payment by the public entity without
reasonable cause shall be liable for reasonable attorney fees and interest charged at one-half
percent accumulated daily, not to exceed fifteen percent. Any public entity failing to make
any final payments after formal final acceptance and within forty-five days following receipt
of a clear lien certificate by the public entity shall be liable for reasonable attorney fees and
interest charged at one-half percent accumulated daily, not to exceed fifteen percent.
(2) Any interest received by the contractor pursuant to Paragraph (1) of this
Subsection, shall be disbursed on a prorated basis among the contractor and subcontractors,
each receiving a prorated portion based on the principal amount due within ten business days
of receipt of the interest.
C. The provisions of this Section shall not be subject to waiver by contract.
D. Any public entity failing to make any progressive stage payments arbitrarily or
without reasonable cause, or any final payment when due as provided in this Section, shall
be subject to mandamus to compel the payment of the sums due under the contract up to the
amount of the appropriation made for the award and execution of the contract, including any
authorized change orders.
E. A declaration that a public works contract is null and void as being contrary to the
provisions of R.S. 38:2211 et seq. shall not affect amounts due and payable under the
contract, including overhead and profit, for the work performed by or on behalf of the
contractor.

Legislative History

Acts 1991, No. 1044, §1; Acts 2011, No. 184, §1; Acts 2014, No. 487, §1; Acts 2018, No. 566, §1; Acts 2021, No. 205, §1; Acts 2024, No. 165, §1, eff. May 23, 2024.