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promptly. Therefore, payments under Public Improvement contract shall be made as <br />provided in this subsection 16.7.2. <br />16.7 .2 .1 Progress Payments. <br /> The city shall make progress payments on the contract <br />monthly as work progresses on a Public Improvement contract. Payments shall <br />be based upon estimates of work completed that are approved by the city. A <br />progress payment is not considered acceptance or approval of any work or <br />waiver of any defects therein. <br />16.7 .2 .2 Progress Payment Due Date. <br /> Progress payments are due on or before the <br />earlier of: (a) thirty (30) days after receipt of the invoice from the contractor, or <br />(b) fifteen (15) days after the payment is approved by the city (the “Due Date”). <br />16.7 .2 .3 Interest on Late Progress Payments. <br /> The city shall pay to the contractor <br />interest on the progress payment, not including retainage, commencing on the <br />Due Date. The rate of interest charged to the city on the amount due shall equal <br />three times the discount rate on 90-day commercial paper in effect at the Federal <br />Reserve Bank in the Federal Reserve district that includes Oregon on the Due <br />Date, but the rate of interest may not exceed thirty percent (30%). Interest shall <br />be paid automatically when payments become overdue. The city shall document, <br />calculate and pay any interest due when payment is made on the principal. <br />Interest payments shall accompany payment of net due on Public Contracts. <br />The city may not require the contractor to petition, invoice, bill or wait <br />additional days to receive interest due. <br />16.7 .2 .4 Incomplete Invoices. <br /> When an invoice is filled out incorrectly, when there is <br />any defect or impropriety in any submitted invoice or when there is a good faith <br />dispute, the city shall so notify the contractor within fifteen (15) days stating the <br />reason or reasons the invoice is defective or improper or the reasons for the <br />dispute. A defective or improper invoice, if corrected by the contractor within <br />seven (7) days of being notified by the city, may not cause a payment to be <br />made later than the Due Date that would have applied if the invoice had been <br />complete when submitted unless interest is also paid. <br />16.7 .2 .5 Contractor’s Obligation to Notify Subcontractors of Progress Payments. <br /> If <br />requested in writing by a first-tier subcontractor, the contractor, within ten (10) <br />days after receiving the request, shall send to the first-tier subcontractor a copy <br />of that portion of any invoice, request for payment submitted to the city or pay <br />document provided by the city to the contractor specifically related to any labor <br />or materials supplied by the first-tier subcontractor. <br />16.7 .2 .6 Disputes. <br /> Payment of interest may be postponed when payment on the principal <br />is delayed because of disagreement between the city and the contractor. <br />Whenever a contractor brings formal administrative or judicial action to collect <br />interest due under this section, the prevailing party is entitled to costs and <br />reasonable attorney fees. <br />Article 16 Contract Administration Page 84 <br />Exhibit A to Administrative Order No. 44-08-06-F <br /> <br />