Title
Amending Title 17 of The Philadelphia Code, entitled "Contracts and Procurement," by adding provisions requiring the City to pay its vendors promptly and requiring City vendors to pay their subcontractors promptly, all under certain terms and conditions.
Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Title 17 of The Philadelphia Code is hereby amended to read as follows:
TITLE 17. CONTRACTS AND PROCUREMENT.
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CHAPTER 17-1700. PROMPT PAYMENT OF CITY VENDORS AND THEIR SUBCONTRACTORS.
§17-1701. Definitions.
(1) Procurement Contract. A contract under which the City procures goods or services, whether or not such contract is subject to competitive bidding.
(2) Vendor. A person providing goods or services under a Procurement Contract.
§17-1702. Prompt Payment of City Vendors.
(1) It is the policy of the City of Philadelphia that a Vendor should be paid promptly. In furtherance of this policy, all Procurement Contracts shall include provisions, in form approved by the City Solicitor, to carry out the following Vendor "prompt payment" requirements:
(a) The City shall specify a time period (the "Prompt Payment Period") within which it will pay invoices properly submitted by a Vendor. The Prompt Payment Period need not be uniform for all Procurement Contracts, but it shall not exceed thirty (30) days unless a greater period of time, not to exceed sixty (60) days, is reasonably required for the City to determine whether goods have been properly provided or services have been properly performed.
(b) If the City fails to make full payment within the Prompt Payment Period, the City shall pay interest on any unpaid amounts at the rate of one and one-half percent (1.5%) per month or part of a month until payment is made, beginning at the expiration of the Prompt Payment Period, except as follows:
(i) If the form of an invoice is incorrect, defective or otherwise improper, the City shall wit...
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