Title
Amending Title 17 of The Philadelphia Code, entitled "Contracts and Procurement," by adding provisions requiring the City Contractors to pay subcontractors promptly and setting forth an alternative process for prompt payment, all under certain terms and conditions.
Body
WHEREAS, Philadelphia is the fifth largest city in the United States with a population of over 1.5 million people, 55% of whom are minorities; and
WHEREAS, Businesses owned by minorities, women and the disabled receive less than 12% of the contracts awarded by the City; and
WHEREAS, The City of Philadelphia's current diversity and inclusion plan attempts to ensure that the economic opportunities of the City are afforded in accordance with the diversity of its population; and
WHEREAS, Representatives of government have made a commitment to working with private industry, building trades unions, educational institutions, chambers of commerce and nonprofit organizations, to improve economic inclusion for businesses owned by minorities, women and the disabled; and
WHEREAS, The City's failure to timely pay its contractors results in delayed payments to businesses owned by minorities, women and the disabled performing as subcontractors; and
WHEREAS, Delayed payments to contractors requires subcontractors to finance payroll and materials for weeks or months while waiting for the City to pay its contractors, often forcing subcontractors into insolvency; and
WHEREAS, The use of a Joint Check Agreements is a best industry practice that can help them compete in the mainstream of the Philadelphia economy by providing access to operating capital; now, therefore,
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.
ยง17-1701. Definitions.
(1) Procurem...
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