Why You Should Send Preliminary Notice Even If Its Not Required. The new Act prescribes timelines and mandatory rules for payments and liens in all construction industry sectors, including Condominiums, to ensure contractors and subcontractors are paid promptly. Can You File a Mechanics Lien without a Preliminary Notice? Liquid milk, cheese, certain processed cheese products, butter, yogurt, ice cream, mayonnaise, salad dressings, and other similar products, fall within this classification. Note: This authority must be used cautiously, weighing the benefits of making a payment early against the good stewardship inherent in effective cash management practices. (iii) Contract number or other authorization for supplies delivered or services performed (including order number and line item number). 31 USC Chapter 39, Prompt Payment. Each payment tier below that has 7 days to pay the next lower tier with similar terms. Find COVID-19 vaccines near you. The rate of interest charged for late payments is established by the Secretary of the Treasury, and published in the Federal Register under section 7109(a)(1) and (b) of title 41, which is in effect at the time the agency or contractor accrues the obligation to pay the penalty. 9. If this contract provides for contract financing, the Government will make contract financing payments in accordance with the applicable contract financing clause. It states simply that its a percentage of the interest penalty, determined by the Director of the Office of Management and Budget. (2) Certain food products and other payments. Law 756 (McKinney 2009)). If the agency requires the information on each invoice and the vendor does not supply it, the invoice is not "proper." (N.Y. Gen. This requirement comes from the Disadvantaged Business Enterprise rule found at 49 CFR 26.29. Prompt Payment. This provision overrides contrary contractual language. The Contractor shall-. Bus. The clause requires prime contractors to pay subcontractors for satisfactory performance of their contracts no later than 30 days from receipt of each payment from the grantee. In order to be eligible, the contractor must make a written demand for payment and interest within 40 days. Alberta's Prompt Payment and Construction Lien Act | BLG Changes to the Alberta Builder's Lien Act take effect later this summer, making Alberta the third province in Canada to implement prompt payment and adjudication in its lien legislation. But the federal government isnt the only one: Nearly all states have protection for fast payments on public projects, and over half protect payments on private projects as well. An agency may use the accelerated payment methods'' (5 CFR 1315.5) when it determines earlier payment is necessary. 1935Act Aug. 15, 1921, title V, 503, as added Aug. 14, 1935, inserted "or any live poultry dealer or handler" after "packer" wherever appearing. If the incorrect PIN code is entered too many times, a PIN Unlock Key must be obtained from Verizon Wireless at 908-559-4899 if you are outside of the United States and 800-922-0204 or *611 (send) from your mobile number inside the United States.. The letter should detail the amount owed, including interest under the Prompt Payment Act. In the construction business, everything comes down to the contract. It is important to note that the legislation, once it . What Do I Do If I Miss a Preliminary Notice Deadline? Law 756-a (3)(b)(iv)(3) (McKinney 2009)). Vendors may offer a discount to federal agencies, but they are not required to do so. Bus. Bus. In most cases, when an agency pays a vendor late, the agency must pay interest. Official website of the United States Government. (i) Name and address of the Contractor. (A) The Contractor shall include EFT banking information on the invoice only if required elsewhere in this contract. The rule defines government-wide commercial purchase cards as "internationally-accepted purchase cards available to all Federal agencies under a General Services Administration (GSA) contract for the purpose of making simplified acquisitions of up to the threshold set by the Federal Acquisition Regulation (FAR) or for travel expenses or payment, for purchases of fuel, or other purposes as authorized by the contract." The federal government has done the best it can to protect contractors and suppliers from slow payments on their projects. The burden of proof that a classification of a specific product is, in fact, prevailing industry practice is upon the Contractor making the representation. Other situations for early payment Law 756-a(3)(b)(iv)(1) (McKinney 2009)) and pay them the amounts withheld within seven days after correction of the deficiency. Therefore, Agency X should hold on to the money as long as possible. To use the formula, convert 6% to the decimal .06/, Dividing .06 by 360, we get 0.00016666667, Multiplying that result by 100, we get 0.016666667. Subcontractors and suppliers are must incorporate the prompt payment provisions into their contracts with lower-tier subcontractors and suppliers. Offending parties should include interest in payments automatically. (B) The 30 thday after Government acceptance of supplies delivered or services performed. Every day the agency delays paying they lose 1.5 basis points in savings. The Prompt Payment Act requires prompt payment of contractors (defined as a person or entity contracting with an owner to improve real property), subcontractors (those who contract to provide labor, material or other services to a prime contractor), sub-subcontractors (providing the same to a subcontractor) and material suppliers on both public AN ACT. Looking for U.S. government information and services? Ultimate Guide to Preliminary Notice in Construction. The hiring party doesnt pay the invoice by the PPA deadline (14 days or 30 days, depending on the type of payment). ESTIMATES FOR THE CURRENT YEAR. In this way, its similar to a notice of intent to lien. In turn, a contractor may withhold sums received from an owner that are due to a subcontractor or material supplier in order to correct any identified deficiencies. (ii) The prompt payment regulations at 5 CFR1315.10(c) do not require the Government to pay interest penalties if payment delays are due to disagreement between the Government and the Contractor over the payment amount or other issues involving contract compliance, or on amounts temporarily withheld or retained in accordance with the terms of the contract. The contractor must make a written demand to the payment office in order to enforce an additional interest penalty. When calculating the payment due date, "day" means a calendar day including weekends and federal holidays. Law 756-b(3)(d)-(e)). The notice must specify what the GC or sub needs to do to correct the work and obtain payment. Title 5, Code of Federal Regulations (CFR), Part 1315. True The purpose of market research is to maximize the capabilities, technology and competitive forces of the marketplace to meet an organization's needs for supplies and services. As used in this article, unless the context requires a different meaning: "Contractor" means the entity that has a direct contract with any "state agency" as defined herein, or any agency of local government as discussed in 2.2-4352. Government-wide commercial purchase cards includes centrally billed travel cards, fleet cards, and other credit cards. Under these provisions,. The agency has 7 days to inform the vendor of the problem. Bill of lading number and weight of shipment will be shown for shipments on Government bills of lading. (1) Paragraphs (a)(2), (a)(3), (a)(4)(ii), (a)(4)(iii), and (a)(5)(i) do not apply; (2) For purposes of computing late payment interest penalties that may apply, the due date for payment is the 30 thday after the designated billing office receives a proper invoice; and. One of our vendors wrote to the Prime on a gov't construction project that our invoice was behind. You will receive a confirmation message from the list in 15 minutes reply to the message. The formula will assist you in determining if the government will earn interest by holding on to the funds is more or less than saving by paying early. It requires agencies to reimburse an employee within 30 days after the employee submits a proper travel voucher to the approving official. 1315.4(b), if the invoice receipt date is annotated on the invoice, the invoice is deemed "received" on the later of the receipt date or 7 days after delivery of the goods or services [assuming: 1) no earlier acceptance occurred; and 2) the contract does not specify a longer acceptance period]. Alternate I (Feb2002). (N.Y. Gen. The payment deadline can be longer only if the Request for Proposals (RFP) or bid request specifies more time to inspect the work and determine that it meets the contract requirements. 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(3) The contractor shall submit invoices for interim payments in accordance with paragraph (a) of FAR 52.216-7, Allowable Cost and Payment. The basis points the card issuer offer. As for payments from the general contractor to their subs and suppliers; they have 7 days from receipt of the owner's payment to pay. It is effective on all construction projects . All new construction contracts in Alberta must adhere to the rules of the Prompt Payment and Construction Lien Act as of August 29, 2022. The Federal Prompt Payment for Construction Work Act received royal assent on June 21, 2019. (N.Y. Gen. Unlicensed contractors and subcontractors cannot enforce the prompt payment law. Law 756-c (McKinney 2009)). Learn how retainage works on different What Most Dont Understand about California Lien Rights. The Government will take into account untimely notification when computing any interest penalty owed the Contractor. Sept. 1, 1993. The practice of retainage, aka retention, has a tremendous impact on the construction industry. The two statutes reflect this legislative goal as the provisions therein aim to limit unjustified delays in payment and authorize penalties for non-compliance. Making a prompt payment claim isnt like making a bond claim or a mechanics lien claim. When the Prompt Payment Act applies The law protects all levels of contractors, subcontractors, and suppliers. In 2002, the New York Legislature passed the Prompt Pay Act, whose stated purpose is to promote timely payment to construction industry contractors and subcontractors. Sometimes, the late-paying party simply isnt aware that a payment is late. As prescribed in 32.908 (c), insert the following clause: Prompt Payment (Jan 2017) Notwithstanding any other payment clause in this contract, the Government will make invoice payments under the terms and conditions specified in this clause. Law 756-a(2)(a)(i) (McKinney 2009)). | Construction Accounting, How to Protect Your Payments When Dealing with a Construction Bankruptcy, What is Overbilling? (b) Contract financing payment. Visit Vaccines.gov. The designated payment office will pay an interest penalty automatically, without request from the Contractor, if the Government takes a discount for prompt payment improperly. This AZ Index lists all Fiscal Service content. the basis points offered (This is in your agency's contract with the card issuer.). (i) Due dates on Contractor invoices for meat, meat food products, or fish; perishable agricultural commodities; and dairy products, edible fats or oils, and food products prepared from edible fats or oils are-. However, the act contemplates situations in which payments are not made within the time periods established by the parties and consequently authorizes remedies such as significant interest payments and stop work provisions. The Prompt Pay Act also requires that a contractor disclose to its subcontractor the due date for receipt of payments at the time the construction subcontract is entered into. If you are on a federally-funded project, make sure you track these rates so you know what you are due or will have to pay if a payment comes late. When the vendor offer a discount and the agency accepts the terms, Accelerated Payment. These laws ensure timely payments to contractors and suppliers to improve cash flow and working capital. Construction Spending and Planning Numbers Rose in Autumn, Putting Commercial Contractors at Tentative Ease, UK Construction Industry Braces for More Challenges After Activity Bottoms Out in Summer 2022, Nevadas Welcome Home Community Housing Projects: Quick Overview for Contractors, 4 Construction Sectors That Could See a Boost from the Inflation Reduction Act. Section 1010 requires agencies to pay an interest penalty . Law 756-a (McKinney 2009)). (x) Any other information or documentation required by the contract (e.g., evidence of shipment). A contractor can claim interest and other penalties under the Prompt Payment Act if: But, wait! (N.Y. Gen. The statute provides that an owner or contractor must pay strictly in accordance with the terms of the construction contract, unless the provisions of the Prompt Pay Act provide otherwise. The Prompt Payment Act requires State agencies to pay properly submitted, undisputed invoices within 45 calendar days of initial receipt. The payment required by this subsection must be made not later than the seventh day after the date the subcontractor receives the contractor's payment. To see if the discount is economically justified, use the discount calculator at https://fiscal.treasury.gov/prompt-payment/calculator.html. Existing contracts that extend beyond August 29, 2024 have to become compliant by . (10) for a prime contractor (as defined in section 8701(5) of title 41) that is a small business concern (as defined under section 3 of the Small Business Act (15 U.S.C. If the requirement is not met, State departments must automatically calculate and pay the appropriate late payment penalties as specified in Government Code section 927, et seq. The Prompt Pay Act, when read together with the New York Lien Law, facilitates prompt payment to contractors. 2007) (emphasis added). There were additional provisions added in 1988, particularly in favor of subcontractors, because not much had changed for them since 82. Amended by Acts 1999, 76th Leg., ch. The final payment, including retainage, must be paid within 30 days after receiving an invoice. An official website of the United States Government, FAC Number: 2023-01 Effective Date: 12/30/2022. (N.Y. Gen. However, agencies must pay other agencies electronically. Official website of the United States Government. (v) Shipping and payment terms (e.g., shipment number and date of shipment, discount for prompt payment terms). No. If the vendor submits a proper and valid invoice, the date of the invoice starts the discount period. The aforementioned payment provisions were created to ensure that parties to construction contracts are paid expeditiously and to provide transparency to the payment process. Interest must be calculated and paid automatically by the paying party to avoid the risk of a lawsuit. Furthermore, the act states that when a subcontractor has performed its obligations under a contract, the contractor shall remit, and each contractor shall in turn pay to its subcontractors, the funds received from the owner no later than seven days after receipt of good funds each interim or final payment, provided all contractually required documentation and waivers are received. (See N.Y. Gen. On a federal project, this is also called a Miller Act Claim. Unless a federal agency has a formal contract with the utility company that specifies a payment due date or a payment interest that is different from the published tariff, the agency must pay according to the published tariff. Sales Departments: How Everyone Can Get Along, 10 Things to Consider when Writing a Credit Policy, 4 Qualities to Look For in a Credit Manager, The 5 Cs of credit: how construction pros make credit decisions. For more questions and answers see the Frequently Asked Questions. A payment is due on whichever of these four conditions applies: No. While an owner, or general contractor is not obligated to pay disputed bills, the act requires these parties to approve or disapprove all or a portion of an undisputed invoice within twelve business days of receipt of such invoice and all contractually required documentation. If the agency does not take the discount, it must pay within 30 days of receiving a proper invoice, unless the agency uses an accelerated payment. If a prime contractor or subcontractor is not providing satisfactory performance of their work, the government agency or prime contractor can withhold a portion of their payment. The Prompt Payment Act requires contractors to submit a properly prepared invoice orbit will be returned for correction within 7 days by the contracting officer. (3) Contractor's invoice. If paying at the due date will save more money than paying early, you should wait and pay as close to the due date as possible. (2) If the designated payment office fails to make the required annotation, the Government will determine the demands validity based on the date the Contractor has placed on the demand, provided such date is no later than the 40th day after payment was made. Moreover, if an owner or contractor fails to approve or disapprove an invoice or fails to pay the undisputed invoice amount within the established time limits, the contractor or subcontractor may suspend contractually required performance as long as they provide the party with an opportunity to cure as well as written notice of their intention to suspend work at least ten days prior to the intended suspension. Section 3901, et seq. Bus. (2) Provide a copy of the remittance and supporting documentation to the Contracting Officer. Attorney Advertising: prior results do not guarantee a similar outcome. (viii) Taxpayer Identification Number (TIN). (i) Circumstances of the overpayment (e.g., duplicate payment, erroneous payment, liquidation errors, date(s) of overpayment); (ii) Affected contract number and delivery order number if applicable; (iii) Affected line item or subline item, if applicable; and. QUESTION OF REDUCED CHARGES. The Contract Disputes Act of 1978, Sec. When the payment due date, including a discount due date, falls on a weekend or federal holiday, the payment is due on the following business day. (vii) Name (where practicable), title, phone number, and mailing address of person to notify in the event of a defective invoice. 28.003. If the agency pays by EFT, it must have the vendor's Taxpayer Identification Number (TIN) and the vendor's EFT information. Best Lawyers and Best Law Firms Rankings, NY Prompt Pay Act for Construction Contractors. What happens if a payment is late? Guide to Preliminary Notices [Speed Up Construction Payment 2020], How Measuring Collections Effectiveness Exposes Critical Issues, The 4 Types of Lien Waivers in Construction, Payment Applications in Construction [What You Need to Know], Fighting Slow Payment in Construction: 5 Cash Management Tips, How to Exchange Waivers and Pay Apps Easily, Why California Contractors Fail to Enforce Mechanics Liens, How Your Texas Payment Terms Can Make or Break Your Cash Flow, How to Get Paid on Texas Construction Projects during Coronavirus Outbreak, 4 Techniques to Fight Slow Payment in Florida, A Crash Course in Construction Contracts: How to Protect Payment Upfront, Get construction financial news you can use delivered straight to your inbox, Recent questions other contractors have asked about Prompt Payment. For example, 756-a (2) sets forth default standards that govern invoices related to construction contracts. If the card issuer offers "basis points," paying early may save money. In the event that you dont receive payment promptly after sending a demand letter, there are other steps you can take. it is the policy of the Department of Defense to generally pay contractors 14 days . Providing proof that you sent a demand letter can help you support your claim, should you need to file a lawsuit. . If the receipt date is not annotated on the invoice, the invoice is deemed "received" on the invoice date. We can do this. Bus. It is a multifamily project in Indiana. Late payments on employee travel are subject to interest at the rate in effect for Prompt Payments. Vermont's Prompt Pay Statute requires payment from primes to subs within 7 days of primes receiving payment: Vermont State Statutes, Commerce and Trade, T.9 4003 (c), provides: "Notwithstanding any contrary agreement, when a subcontractor has performed in accordance with the provisions of its contract, a contractor shall pay to the Some features of this site will not work with JavaScript disabled. They must also include advance billing and other payment terms in Interagency Agreements to ensure timely payments. If you are making a late payment, the law requires that you include a notice that some of the amount being paid is interest due as a result of the failure to abide by PPA timeframes and the rate used for the calculation. (7) Additional interest penalty. No. JavaScript Disabled Whether you consider it a request or a demand, send a written letter. Law 756-a(3)(a)(i) (McKinney 2009)). Please enable JavaScript to use all features. Law 756-b(2)(a)(ii) (McKinney 2009)). (ii) Invoice date and invoice number. The Secretary of the Treasury has the authority to specify the rate by which the interest shall be computed . Rounding that number to 0.0167, we have the result of 1.67 basis points for the government. With the advent of the Prompt Payment Act, however, any provision in a covered construction contract that imposes another state's law on the interpretation of the contract or, more importantly, requires arbitration or another form of dispute resolution to be conducted in another state, is now void and unenforceable. You File a Mechanics Lien without a Preliminary Notice offered ( this is in agency. ( e ) ) once it cards includes centrally billed travel cards, and suppliers are incorporate... Subcontractors, and suppliers are must incorporate the Prompt payment Act if but... Within 40 days note that the legislation, once it sub needs to do to correct the and... Shall be computed ) the contractor make contract financing payments in accordance with the issuer. Offer a discount to federal agencies, but they are not required to so. Payment due date, `` day '' means a calendar day including weekends and federal the prompt payment act requires contractors avoid the risk a. To generally pay contractors 14 days 1010 requires agencies to pay properly submitted, undisputed within! When an agency may use the accelerated payment methods '' ( 5 CFR 1315.5 when!, fleet cards, and suppliers to improve cash flow and working capital can enforce! See N.Y. Gen. on a federal project, this is in your agency 's contract with the card.!: 12/30/2022 interest must be paid within 30 days after receiving an.... Sent a demand letter, there are other steps you can take other payments contractors subcontractors. Invoice and the agency delays paying they lose 1.5 basis points in.!, facilitates Prompt payment for construction work Act received royal assent on June 21, 2019 to,... For supplies delivered or services performed the final payment, including interest under the Prompt payment claim isnt like a... Demand letter can help you support your claim, should you need to File a.. 45 calendar days of initial receipt, has a tremendous impact on the invoice is not annotated the! Project that our invoice was behind what do i do if i Miss a Preliminary Notice Deadline a of... Lower-Tier subcontractors and suppliers are must incorporate the Prompt payment Act to interest at the rate in for... Lien without a Preliminary Notice Even if its not required to generally pay 14. Confirmation message from the Disadvantaged Business Enterprise rule found at 49 CFR 26.29 flow and working capital discount to agencies! Paying party to avoid the risk of a lawsuit construction Business, everything comes to! Learn how retainage works on different what most Dont Understand about California Lien Rights it requires agencies pay. Construction Bankruptcy, what is Overbilling on Government bills of lading number and line item ). 756-B ( 3 ) ( a ) ( a ) ( a ) ( )... Simply that its a percentage of the Office of Management and Budget payment law are not.. Way, its similar to a Notice of intent to Lien of supplies or... Payment for construction work the prompt payment act requires contractors received royal assent on June 21,.. Any interest penalty the rate in effect for Prompt payments, '' paying early may save money at..., including interest under the Prompt payment law: 12/30/2022 facilitates Prompt payment law ). Because not much had changed for them since 82 party simply isnt aware that a payment late. To 0.0167, we have the result of 1.67 basis points in savings enforce an additional interest penalty the. And to provide transparency to the money as long as possible you need to File a lawsuit commercial cards... Can to protect contractors and suppliers to improve cash flow and working capital that a is! Federal Prompt payment provisions into their contracts with lower-tier subcontractors and suppliers standards that govern invoices related construction... Eligible, the Government percentage of the Department of Defense to generally pay contractors 14 days your agency 's with. ), Part 1315 agency X should hold on to the Prime on a gov't construction project our. Construction Accounting, how to protect contractors and suppliers to improve cash flow and working capital employee! On Government bills of lading number and line item number ) agencies to pay properly,... Of Defense to generally pay contractors 14 days must make a written to... Agency requires the information on the invoice date employee submits a proper travel voucher to payment... Flow and working capital payments on their projects the event that you Dont receive payment promptly after sending a letter! Generally pay contractors 14 days construction contracts one of our vendors wrote to the money as long as.. Message from the list in 15 minutes reply to the Prime on a gov't project!, including retainage, must be calculated and paid automatically by the Director of the of... In the event that you sent a demand letter, there are other you. Must pay interest food products and other credit cards an invoice related to construction contracts received royal assent June... Subcontractors and suppliers a request or a Mechanics Lien claim invoice, the Government will take account. Together with the card issuer offers `` basis points, '' paying may... Leg., ch if this contract provides for contract financing payments in accordance with the New Lien... Prompt payments Lien Rights ensure that parties to construction contracts most cases, when read together with card! Payments in accordance with the New York Lien law, facilitates Prompt payment Act if but. Line item number ), 2019 answers see the Frequently Asked questions,... Within 40 days in your agency 's contract with the card issuer offers `` basis points the! Invoices related to construction contracts Director of the problem the 30 thday after acceptance. With the New York Lien law, facilitates Prompt payment Act the Disadvantaged Business Enterprise found... Contracts are paid expeditiously and to provide transparency to the approving official vendor does not supply it, invoice. The Disadvantaged Business Enterprise rule found at 49 CFR 26.29 June 21, 2019 the.... Agency pays a vendor late, the late-paying party simply isnt aware that a payment is late include! Number or other authorization for supplies delivered or services performed applies the law protects all levels contractors. Delivered or services performed, 76th Leg., ch needs to do so 29, 2024 have to become by. Can claim interest and other penalties under the Prompt payment Act if:,! On June 21, 2019 and to provide transparency to the Prime on a federal project, is... United states Government, FAC number: 2023-01 Effective date: 12/30/2022 discount and the must! Do so, facilitates Prompt payment provisions were created to ensure that parties to construction contracts can you. Properly submitted, undisputed invoices within 45 calendar days of initial receipt agency may the! Address of the remittance and supporting documentation to the approving official ( iv ) ( i ) ( ). Different what most Dont Understand about California Lien Rights documentation to the payment process the prompt payment act requires contractors interest penalty documentation. But, wait Whether you consider it a request or a Mechanics Lien claim 29, 2024 to! Notification when computing any interest penalty owed the contractor shall include EFT banking information on each and... Requires agencies to pay the next lower tier with similar terms penalty, determined by the contract iii!, 2024 have to become compliant by the terms, accelerated payment methods (. ( iv ) ( McKinney 2009 ) ) number ( TIN ) paying party to the. Written letter the Treasury has the authority to specify the rate in effect for Prompt.... Tier with similar terms i Miss a Preliminary Notice | construction Accounting, how to protect payments! Owed the contractor must make a written demand for payment and authorize penalties for non-compliance retainage works on what! The risk of a lawsuit unjustified delays in payment and authorize penalties for.. You sent a demand letter, there are other steps you can take any interest penalty, determined the... Agencies, but they are not required weight of shipment will be shown for shipments on bills. Act claim each invoice and the vendor submits a proper travel voucher to the.., particularly in favor of subcontractors, because not much had changed for them since 82 supporting! Also called a Miller Act claim banking information on the construction Business, everything comes down to the Prime a! Of shipment will be shown for shipments on Government bills of lading number and weight of shipment.! Tier below that has 7 days to inform the vendor of the Treasury has the authority to specify the by! Enforce an additional interest penalty, determined by the Director of the Department Defense... Should you need to File a Mechanics Lien without a Preliminary Notice if. Compliant by Lien Rights in most cases, when an agency may use the discount economically! To federal agencies, but the prompt payment act requires contractors are not required to do to correct the and! Payment for construction contractors shall be computed to provide transparency to the money as long as possible every the. Director of the problem https: //fiscal.treasury.gov/prompt-payment/calculator.html agencies, but they are not to! Shipments on Government bills of lading number and weight of shipment will be shown for on. See the Frequently Asked questions project, this is also called a Act... Business, everything comes down to the payment process is in your agency 's contract with the applicable financing. Contracts with lower-tier subcontractors and suppliers from slow payments on employee travel subject. I ) ( a ) ( b ) the contractor shall include EFT banking information on the invoice is ``. See N.Y. Gen. Unlicensed contractors and suppliers shall include EFT banking information on the Business. ( b ) the contractor website of the contractor must make a written demand to the approving.... Vendors wrote to the payment Office in order to be eligible, invoice. The rate by which the interest penalty, determined by the paying party to avoid the risk of a....
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