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Committee advances ordinance requiring prime contractors to pay subcontractors within seven days
Summary
The Government Audit and Oversight Committee voted without objection to send forward an ordinance that would amend the San Francisco Administrative Code to require prime public-works contractors to pay subcontractors within seven days of receiving city payment, and to impose a 2% penalty for noncompliance; an amendment clarifies the provision is enforceable in court.
The Government Audit and Oversight Committee on Tuesday forwarded with a positive recommendation an ordinance amending the San Francisco Administrative Code to require prime public-works contractors to pay subcontractors within seven days of receiving payment from the city.
Carmen Chu, chair of the Government Audit and Oversight Committee, said the measure addresses the third phase of prompt-payment concerns: "This legislation seeks to address the third component or the third section," she said, adding the city is already working on other pieces such as invoice submission and processing…
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