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HOUSE BILL NO. 532
INTRODUCED BY S. ANDERSON
AN ACT REQUIRING GOVERNMENT ENTITIES TO DECIDE WITHIN 10 DAYS AFTER A REQUEST FOR FINAL ACCEPTANCE BY THE CONSTRUCTION CONTRACTOR WHETHER OR NOT TO FINALLY ACCEPT THE CONSTRUCTION OF A BUILDING AND TO MAKE FINAL PAYMENT OF THE PRICE OF CONSTRUCTION CONTRACTS WITHIN 30 DAYS OF FINAL ACCEPTANCE OF THE CONSTRUCTION OF THE BUILDING; REQUIRING PAYMENT OF INTEREST; AND PROVIDING AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Time of final acceptance and final payment on construction contracts -- interest. (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 18-1-404. 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.
Section 2. Contract let by commission -- time for final payment of contract price -- interest. The commission shall comply with the 30-day time period for payment of contracts as provided in [section 1] for all contracts let by the commission in accordance with this part.
Section 3. Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 18, chapter 2, part 3, and the provisions of Title 18, chapter 2, part 3, apply to [section 1].
(2) [Section 2] is intended to be codified as an integral part of Title 60, chapter 2, part 1, and the provisions of Title 60, chapter 2, part 1, apply to [section 2].
Section 4. Applicability. [This act] applies to contracts entered into after October 1, 1999.
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Latest Version of HB 532 (HB0532.ENR)
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