OAR 734-010-0450: Interest

(1) Prompt payment policy. ODOT shall pay promptly all payments due and owing to the Contractor on Contracts for Public Improvements. (2) Interest on progress payments. Late payment interest shall begin to accrue on payments due and owing on the earlier of 30 Days after receipt of invoice or 15 Days after Agency approval of payment (the "Progress Payment Due Date"). The interest rate shall equal three times the discount rate on 90-day commercial paper in effect on the Progress Payment Due Date at the Federal Reserve Bank in the Federal Reserve district that includes Oregon, up to a maximum rate of 30 percent. (3) Interest on final payment. Final payment on the Contract Price, including retainage, shall be due and owing no later than 30 Days after Contract completion and acceptance of the Work. Late-payment interest on such final payment shall thereafter accrue at the rate of one and one-half percent per month until paid. (4) Settlement or judgment interest. In the event of a dispute as to compensation due a Contractor for Work performed, upon settlement or judgment in favor of the Contractor, interest on the amount of the settlement or judgment shall be added to, and not made part of, the settlement or judgment. Such interest, at two times the discount rate but not to exceed 30% on 90-day commercial paper in effect at the Federal Reserve Bank in the Federal Reserve District that includes Oregon on the date and accruing from the later of: (a) The Due Date of any Progress Payment received under the Contract for the period in which such Work was performed; or (b) Thirty Days after the date on which the claim for payment under dispute was presented to ODOT by the Contractor in Writing or in accordance with applicable provisions of the Contract.