66.0135 Interest on late payments.
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/wi/chapter-66/66-0135A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
66.0135 Interest on late payments.
(1)Definitions. In this section:
(a)“Agency” means any office, department, board, commission or other body under the control of the governing body of a local governmental unit which expends moneys or incurs obligations on behalf of the local governmental unit.
(b)“Good faith dispute” means any of the following:
1. A contention by an agency, principal contractor or subcontractor that goods delivered or services rendered were of a lesser quantity or quality than ordered or specified by contract, were faulty or were installed improperly.
2. Any other reason giving cause for the withholding of payment by an agency, principal contractor or subcontractor until the dispute is settled.
(c)“Local governmental unit” means a political subdivision of this state, a special purpose district in this state, an agency or corporation of a political subdivision or special purpose district, or a combination or subunit of any of the foregoing.
(d)“Subcontractor” has the meaning given in s. 66.0901
(d).
(2)Interest payable to principal contractors.
(a)Except as provided in sub.
(4)or as otherwise specifically provided, an agency that does not pay timely the amount due on an order or contract shall pay interest on the balance due from the 31st day after receipt of a properly completed invoice or receipt and acceptance of the property or service under the order or contract, whichever is later, or, if the agency does not comply with sub.
(7), from the 31st day after receipt of an improperly completed invoice or receipt and acceptance of the property or service under the order or contract, whichever is later, at the rate specified in s. 71.82
(a)compounded monthly.
(b)For the purposes of par.
(a), a payment is timely if the payment is mailed, delivered or transferred by the later of the following:
1. The date specified on a properly completed invoice for the amount specified in the order or contract.
2. Within 30 days after receipt of a properly completed invoice or receipt and acceptance of the property or service under the order or contract, or, if the agency does not comply with sub.
(7), within 30 days after receipt of an improperly completed invoice or receipt and acceptance of the property or service under the order or contract, whichever is later.
(3)Interest payable to subcontractors.
(a)Except as provided in sub.
(e)or as otherwise specifically provided, principal contractors that engage subcontractors to perform part of the work on an order or contract from an agency shall pay subcontractors for satisfactory work in a timely fashion. A payment is timely if it is mailed, delivered or transferred to the subcontractor no later than 7 days after the principal contractor’s receipt of any payment from the agency.
(b)If a subcontractor is not paid in a timely fashion, the principal contractor shall pay interest on the balance due from the 8th day after the principal contractor’s receipt of any payment from the agency, at the rate specified in s. 71.82
(a)compounded monthly.