A school board disputes $18,000 of a $240,000 payment application. What must it do with the rest?
Correct Answer
A) Pay the undisputed portion on the normal payment schedule
Section 218.735(5) provides that if a local governmental entity disputes a portion of a payment request or invoice, the undisputed portion shall be paid timely in accordance with subsection (1). The 150 percent figure belongs to the punch list provision in s. 218.735(7)(e), not to a mid-project dispute.
Why This Is the Correct Answer
Section 218.735(5) provides that if a local governmental entity disputes a portion of a payment request or invoice, the undisputed portion shall be paid timely in accordance with subsection (1). The 150 percent figure belongs to the punch list provision in s. 218.735(7)(e), not to a mid-project dispute.
Why the Other Options Are Wrong
Option B: Hold the entire application until the dispute is resolved
The undisputed portion must still be paid on time.
Option C: Pay the entire application and seek a credit later
Only the undisputed portion must be paid.
Option D: Hold 150 percent of the disputed amount and pay the rest
The 150 percent figure belongs to the punch list provision.
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