Indiana Code 5-16-5.5-5. Payment of subcontractor; certification of receipt
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Terms Used In Indiana Code 5-16-5.5-5
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Agent: shall include any board, commission, trustee, officer or agent which acts on behalf of a state agency. See Indiana Code 5-16-5.5-1
- Contract: A legal written agreement that becomes binding when signed.
- Contractor: shall mean any person, firm, limited liability company, or corporation who is party to a contract with a state agency to construct, erect, alter or repair any public building or is any way involved in public work or public improvement. See Indiana Code 5-16-5.5-1
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- State agency: means the state of Indiana or any commission or agency created by law. See Indiana Code 5-16-5.5-1
- Subcontractor: shall mean and include any person, firm, limited liability company, or corporation who is a party to a contract with the contractor and who furnishes and performs on-site labor on any public building, work or improvement. See Indiana Code 5-16-5.5-1
Sec. 5. Within ten (10) days of the receipt of any payment by the state agency or escrow agent, the contractor or escrow agent shall pay all subcontractors with whom he has contracted their share of the payment the contractor received based upon the service performed by the subcontractor. The contractor shall furnish upon request a sworn statement or certification at the time of payment to him that the subcontractor has received his share of the previous payment to the contractor. The making of an incorrect certification may be considered a breach of contract by the state agency, and it may exercise all of its prerogatives set out in the contract in addition to the remedies for falsifying an affidavit. Such an action may also result in a suspension of prequalification with the certification board established under IC 4-13.6-3-3.
Formerly: Acts 1972, P.L.44, SEC.1. As amended by P.L.33-1983, SEC.16; P.L.24-1985, SEC.15.