Montana Title 18. Public Contracts § 18-2-306. Time of final acceptance and final payment on construction contracts--interest

Current as of January 01, 2024 | Updated by Findlaw Staff

(1) A government entity that enters into a contract for the construction of a building shall, unless otherwise provided by law or the contract and within 10 days after a request by the construction contractor for final acceptance, decide whether or not to make final acceptance. Within 30 days after final acceptance by the government entity, the government entity shall make the final payment of the contract price specified in the contract to the other party to the contract.

(2) Except as provided by law or the contract, a government entity that fails to complete the payment of the contract price at the time required by subsection (1) shall pay to the other party to the contract interest at the rate specified in 17-8-242 or 18-1-404, as applicable. Collection of interest pursuant to this section does not preclude any other legal remedy.

(3) The following definitions apply to this section:

(a) “Building” has the meaning provided in 18-2-101.

(b) “Construction” has the meaning provided in 18-2-101.

(c) “Final acceptance” means the government entity's acceptance of the construction of a building by the contractor upon certification by the architect, project engineer, or other representative of the government entity of final completion of the building.

(d) “Final completion” means that the building has been completed in accordance with the terms and conditions of the contract documents.

(e) “Government entity” means a department, agency, commission, board, authority, institution, or office of the state, including the board of regents and the Montana university system, a municipality, county, consolidated municipal-county government, school district, or other special district.

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Cite this article: FindLaw.com - Montana Title 18. Public Contracts § 18-2-306. Time of final acceptance and final payment on construction contracts--interest - last updated January 01, 2024 | https://codes.findlaw.com/mt/title-18-public-contracts/mt-st-18-2-306/

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