- Alaska Statutes.
- Title 36. Public Contracts
- Chapter 90. Miscellaneous Provisions
- Section 230. Withholding Payment For Unsatisfactory Performance.
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. Optional Contractual Terms.
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. Form of Certain Notices.
AS 36.90.230. Withholding Payment For Unsatisfactory Performance.
- (a) If the prime contractor on a public construction or public works contract, after making a request for payment to the
state or political subdivision but before paying a subcontractor for the subcontractor's performance covered by the
payment request, discovers that part or all of the payment otherwise due to the subcontractor is subject to withholding
from the subcontractor under the subcontract for unsatisfactory performance, the prime contractor may withhold the
amount as allowed under the subcontract. If the prime contractor withholds an amount under this subsection, the prime
- (1) give the subcontractor a notice complying with AS 36.90.240
as soon as practicable after determing the cause for the withholding but before the due date for the subcontractor
- (2) give the contracting officer of the state or political subdivision a copy of the notice furnished to the subcontractor
under (1) of this subsection:
- (3) pay the subcontractor within eight working days after correction of the identified subcontractor performance
- (b) If the prime contractor does not comply with the notice and payment requirements of (a) of this section, the
contractor shall pay the subcontractor interest on the withheld amount from the eighth working day at an interest rate
that is equal to the amount set out in AS 45.45.010
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