3932 - Government agency's progress payment obligations.

     § 3932.  Government agency's progress payment obligations.        (a)  Payments in accordance with contract.--The government     agency shall pay the contractor or design professional strictly     in accordance with the contract.        (b)  Application for progress payments.--If the contract does     not contain a term governing the time for payment, the     contractor or design professional shall be entitled to make     application for payment from the government agency for progress     payments, and the government agency shall make payment less the     applicable retainage amount as authorized in section 3921     (relating to retainage) to the contractor or design professional     within 45 calendar days of the date the application for payment     is received.        (c)  Interest on progress payments not timely made.--Except     as otherwise agreed by the parties, if any progress payment less     the applicable retainage amount as authorized in section 3921 is     not made to a contractor or design professional by the due date     established in the contract or in subsection (b), the government     agency shall pay to the contractor or design professional, in     addition to the amount due, interest on the amount due, and the     interest shall be computed at the rate determined by the     Secretary of Revenue for interest payments on overdue taxes or     the refund of taxes as provided in sections 806 and 806.1 of the     act of April 9, 1929 (P.L.343, No.176), known as The Fiscal     Code.        (d)  When interest payment not required.--In the event that     the contract does not contain a grace period and if a contractor     or design professional is not paid by the payment date required     by subsection (b), no interest penalty payment required under     this section shall be paid if payment is made on or before the     15th calendar day after the payment date required under this     subchapter.        Cross References.  Section 3932 is referred to in sections     3933, 3938 of this title.