Subtitle 37 – Payment of City Obligations

For the purpose of this subtitle, the following words have the meanings indicated unless their context clearly indicates otherwise.

“City” means Mayor and City Council of Baltimore, the body politic and corporate as established by <cite data-doc="City of Baltimore, Md., Charter">the Baltimore City Charter</cite>.

“Construction estimate” means that document signed by the contractor, the inspector, the proper division and bureau chief, and the Director of Public Works, the Director of General Services, or the Director of Transportation, whichever has jurisdiction, certifying that certain work has been completed on a construction contract.

“Director” means the Director of Finance.

“Payment date” means the date of the Director’s check.

“Proper invoice” means an invoice which contains the contractor’s federal Employer’s Identification Number or Social Security Number and the contract or purchase order number or other description of the contract and which contains or is accompanied by such substantiating information and documentation as required by the Director.

“Receipt date” means the date that a proper invoice and receiving notice or, in the case of a construction contract, a proper construction estimate is received and recorded by the Bureau of Payroll and Disbursements.

It is the policy of this City that payment pursuant to any authorized, written procurement contract shall be made by the City to the contractor not later than 30 calendar days from the receipt date of a proper invoice.

Payment pursuant to a construction contract shall be made by the City to the contractor not later than the date specified in the contract or, if no date is specified, then not later than 30 days from the receipt date of a proper construction estimate.

Any amount due and payable pursuant to law and under an authorized, written procurement contract or a construction contract which remains unpaid for more than 45 calendar days after the receipt date shall accrue interest, at a rate specified by the Board of Estimates, for the period that begins 31 calendar days after the receipt date.

If the written construction contract specifies a date before which payment must be made by the City, then the provisions of that contract shall apply to the payment of interest by the City.

if a proper invoice for accrued interest is not submitted within 30 calendar days after the payment date of the amount on which the interest accrued;

if there is a dispute between the City and the contractor;

for more than 1 year following the 31^st calendar day after the receipt date; or

on amounts representing unpaid interest.

Subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, the Director of Finance may adopt rules and regulations approved by the Board of Estimates to carry out this subtitle.

The Director may charge the contracting City agency the interest provided for in this subtitle when the City agency is the cause of any delay requiring the payment of interest; otherwise the Department of Finance shall pay the interest provided for in this subtitle.