ITD Prompt Payment Provision

The U.S. Department of Transportation requires all federal-aid recipients such as the Idaho Transportation Department to have a “prompt payment” contract provision in place, requiring all prime contractors to pay their subcontractors and suppliers in a timely manner.

Although this provision was enacted under DBE regulations (49 CFR 26), the requirement is “race-neutral”, which means it applies to all subcontractors and suppliers.

This is the Idaho Transportation Department’s Prompt Payment Provision:

109.05 Partial Payments. The Contractor shall pay each Subcontractor or supplier for satisfactory performance of its contract no later than 20 calendar days from receipt of each payment the Contractor receives from the Department. The Contractor shall return retainage to each Subcontractor or supplier within 20 calendar days after the subcontractor’s or supplier’s work is satisfactorily completed.

The Contractor shall certify with each estimate payment that payment to Subcontractors or suppliers has been made within the prescribed time frames. The certification will be made on forms provided by the Department, and returned within 30 calendar days of receiving the estimate payment.

These requirements shall also apply to first or lower tier subcontractors or suppliers.

 - Idaho Department of Transportation Department Standard Specifications for Highway Construction

If you are a subcontractor or supplier, and you are in doubt as to whether or not ITD has paid the prime contractor for work items you have performed, call the ITD Residency Office in charge of the project. Residency Office contact information will be listed in the project plans.

Please note that a prime contractor is not required to return retainage to a subcontractor until all work items and contract requirements have been satisfactorily completed by the subcontractor on the project. This includes the subcontractor providing all required documentation and paperwork.

If you are a subcontractor and have found that the prime has been paid for work you have performed more than 20 calendar days ago and you have not, notify the project’s Resident Engineer. This also applies to retainage if you are a subcontractor who has satisfactorily completed all the work items and requirements of your contract and exited the project more than 20 calendar days ago.