Sec. 12. (a) When a public work project is to be performed, the board shall withhold final payment to the contractor until the contractor has paid the subcontractors, material suppliers, laborers, and those furnishing services. However, if there is not a sufficient sum owed to the contractor to pay those bills, the sum owed to the contractor shall be prorated in payment of the bills among the claimants entitled to payment.

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Terms Used In Indiana Code 36-1-12-12

  • Contract: A legal written agreement that becomes binding when signed.
  • public work: means the construction, reconstruction, alteration, or renovation of a public building, airport facility, or other structure that is paid for out of a public fund or out of a special assessment. See Indiana Code 36-1-12-2
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
     (b) To receive payment a subcontractor, material supplier, laborer, or person furnishing services must file a claim with the board not later than sixty (60) days after that person performed the last labor, furnished the last material, or performed the last service as provided in section 13 of this chapter.

     (c) If there is no dispute among the claimants, the board shall pay the claim from the money due the contractor and deduct the amount of the claims from the contract price. The board shall take a receipt for each payment made on a claim.

     (d) If there is a dispute among the claimants, the board shall retain sufficient money to pay the claims until the dispute is settled and the correct amount is determined. However, the board may make a final and complete settlement with the contractor after thirty (30) days after the date of the completion and acceptance of the public work if the contractor has materially fulfilled all of its obligations under the public works contract.

     (e) If the board receives a claim from a subcontractor or a material supplier under this section, the board shall withhold the amount of the claim until the claim is resolved under this section.

     (f) A claim form must be signed by an individual from the political subdivision or agency who is directly responsible for the project and who can verify:

(1) the quantity of a purchased item; or

(2) the weight or volume of the material applied, in the case of a road, street, or bridge project.

[Pre-Local Government Recodification Citations: 5-16-1 part; Part new.]

As added by Acts 1981, P.L.57, SEC.38. Amended by P.L.329-1985, SEC.23; P.L.75-2012, SEC.9.

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