218.735  Timely payment for purchases of construction services.--

(1)  The due date for payment for the purchase of construction services by a local governmental entity is determined as follows:

(a)  If the project architect or project engineer must approve the invoice prior to the invoice being submitted to the local governmental entity, payment is due 20 business days after the date on which the architect or engineer approves the invoice and the invoice is stamped as received as provided in s. 218.74(1).

(b)  If the project architect or project engineer need not approve the invoice which is submitted by the contractor, payment is due 20 business days after the date on which the invoice is stamped as received as provided in s. 218.74(1).

(2)  The local governmental entity may reject the invoice within 20 business days after the date on which the invoice is stamped as received as provided in s. 218.74(1). The rejection must be written and must specify the deficiency in the invoice and the action necessary to make the invoice proper.

(3)  If an invoice is rejected under subsection (2) or this subsection and the contractor submits a corrected invoice, the corrected invoice must be paid or rejected on the later of:

(a)  Ten business days after the date the corrected invoice is stamped as received as provided in s. 218.74(1); or

(b)  If the governing body is required by ordinance, charter, or other law to approve or reject the corrected invoice, the first business day after the next regularly scheduled meeting of the governing body held after the corrected invoice is stamped as received as provided in s. 218.74(1).

(4)  If a dispute between the local governmental entity and the contractor cannot be resolved by the procedure in subsection (3), the dispute must be resolved in accordance with the dispute resolution procedure prescribed in the construction contract or in any applicable ordinance. In the absence of a prescribed procedure, the dispute must be resolved by the procedure specified in s. 218.76(2).

(5)  The payment time periods provided in this section for construction services purchased by a local governmental entity shall not affect contractual provisions or contractual covenants of a local governmental entity in effect on September 30, 1995.

(6)  All payments due from a local governmental entity and not made within the time period specified by this section shall bear interest as specified in s. 218.74(4).