A. Interest shall accrue, at the rate determined pursuant to subsection B, on all amounts owed by a state agency to a vendor that remain unpaid after seven days following the payment date. However, nothing in this section shall affect any contract providing for a different rate of interest, or for the payment of interest in a different manner.
B. The rate of interest charged a state agency pursuant to subsection A shall be the base rate on corporate loans (prime rate) at large United States money center commercial banks as reported daily in the publication entitled The Wall Street Journal. Whenever a split prime rate is published, the lower of the two rates shall be used. However, in no event shall the rate of interest charged exceed the rate of interest established pursuant to § 58.1-1812.
C. Notwithstanding subsection A, no interest penalty shall be charged when payment is delayed because of disagreement between a state agency and a vendor regarding the quantity, quality or time of delivery of goods or services or the accuracy of any invoice received for the goods or services. The exception from the interest penalty provided by this subsection shall apply only to that portion of a delayed payment that is actually the subject of the disagreement and shall apply only for the duration of the disagreement.
D. This section shall not apply to § 2.2-4333 pertaining to retainage on construction contracts, during the period of time prior to the date the final payment is due. Nothing contained herein shall prevent a contractor from receiving interest on such funds under an approved escrow agreement.
E. Notwithstanding subsection A, no interest penalty shall be paid to any debtor on any payment, or portion thereof, withheld pursuant to the Comptroller's Debt Setoff Program, as authorized by the Virginia Debt Collection Act (§ 2.2-4800 et seq.), commencing with the date the payment is withheld. If, as a result of an error, a payment or portion thereof is withheld, and it is determined that at the time of setoff no debt was owed to the Commonwealth, then interest shall accrue at the rate determined pursuant to subsection B on amounts withheld that remain unpaid after seven days following the payment date.
1984, c. 736, § 11-62.5; 1985, c. 101; 1992, c. 75; 2001, c. 844.
Structure Code of Virginia
Title 2.2 - Administration of Government
Chapter 43 - Virginia Public Procurement Act
§ 2.2-4300. Short title; purpose; declaration of intent
§ 2.2-4302.1. Process for competitive sealed bidding
§ 2.2-4302.2. Process for competitive negotiation
§ 2.2-4303. (Effective until July 1, 2023) Methods of procurement
§ 2.2-4303. (Effective July 1, 2023) Methods of procurement
§ 2.2-4303.01. High-risk contracts; definition; review
§ 2.2-4303.1. Architectural and professional engineering term contracting; limitations
§ 2.2-4303.2. Job order contracting; limitations
§ 2.2-4304. Joint and cooperative procurement
§ 2.2-4305. Competitive procurement by localities on state-aid projects
§ 2.2-4308.1. Purchase of owner-controlled insurance in construction projects
§ 2.2-4309. Modification of the contract
§ 2.2-4310.1. Awards as a result of any authorized enhancement or remedial measure; requirements
§ 2.2-4310.2. Executive branch agency's goals for participation by small businesses; requirements
§ 2.2-4310.3. Fiscal data pertaining to certain enhancement or remedial measures
§ 2.2-4311. Employment discrimination by contractor prohibited; required contract provisions
§ 2.2-4312. Drug-free workplace to be maintained by contractor; required contract provisions
§ 2.2-4313. Petition for recycled goods and products; periodic review of procurement standards
§ 2.2-4315. Use of brand names
§ 2.2-4316. Comments concerning specifications
§ 2.2-4317. Prequalification generally; prequalification for construction
§ 2.2-4318. Negotiation with lowest responsible bidder
§ 2.2-4319. Cancellation, rejection of bids; waiver of informalities
§ 2.2-4320. Exclusion of insurance bids prohibited
§ 2.2-4321.2. Public works contracts; project labor agreements authorized
§ 2.2-4321.3. Payment of prevailing wage for work performed on public works contracts; penalty
§ 2.2-4322. Acceptance of bids submitted to the Department of Transportation
§ 2.2-4323. Purchase programs for recycled goods; agency responsibilities
§ 2.2-4323.1. Purchase of flags of the United States and the Commonwealth by public bodies
§ 2.2-4324. Preference for Virginia products with recycled content and for Virginia firms
§ 2.2-4325. Preference for Virginia coal used in state facilities
§ 2.2-4326. Preference for recycled paper and paper products used by state agencies
§ 2.2-4327. Preference for community reinvestment activities in contracts for investment of funds
§ 2.2-4328. Preference for local products and firms; applicability
§ 2.2-4328.1. Preference for energy-efficient and water-efficient goods
§ 2.2-4328.2. Purchase of personal protective equipment by state agencies
§ 2.2-4329.1. Energy forward pricing mechanisms
§ 2.2-4330. Withdrawal of bid due to error
§ 2.2-4331. Contract pricing arrangements
§ 2.2-4332. Workers' compensation requirements for construction contractors and subcontractors
§ 2.2-4333. Retainage on construction contracts
§ 2.2-4336. Bid bonds; construction contracts
§ 2.2-4337. Performance and payment bonds
§ 2.2-4338. Alternative forms of security
§ 2.2-4339. Bonds on other than construction contracts
§ 2.2-4340. Action on performance bond
§ 2.2-4340.1. Statute of limitations on construction contracts
§ 2.2-4340.2. Statute of limitations on architectural and engineering contracts
§ 2.2-4341. Actions on payment bonds; waiver of right to sue
§ 2.2-4342. Public inspection of certain records
§ 2.2-4343. Exemption from operation of chapter for certain transactions
§ 2.2-4343.1. Permitted contracts with certain religious organizations; purpose; limitations
§ 2.2-4344. Exemptions from competition for certain transactions
§ 2.2-4346. Other exemptions for certain transactions
§ 2.2-4349. Retainage to remain valid
§ 2.2-4350. Prompt payment of bills by state agencies
§ 2.2-4350.1. Prohibition on payment without an appropriation; prohibition on IOUs
§ 2.2-4351. Defect or impropriety in the invoice or goods and/or services received
§ 2.2-4352. Prompt payment of bills by localities
§ 2.2-4353. Date of postmark deemed to be date payment is made
§ 2.2-4354. (Effective until January 1, 2023) Payment clauses to be included in contracts
§ 2.2-4354. (Effective January 1, 2023) Payment clauses to be included in contracts
§ 2.2-4355. Interest penalty; exceptions
§ 2.2-4356. Comptroller to file annual report
§ 2.2-4358. Appeal of denial of withdrawal of bid
§ 2.2-4359. Determination of nonresponsibility
§ 2.2-4360. Protest of award or decision to award
§ 2.2-4361. Effect of appeal upon contract
§ 2.2-4362. Stay of award during protest
§ 2.2-4363. Contractual disputes
§ 2.2-4365. Administrative appeals procedure
§ 2.2-4366. Alternative dispute resolution
§ 2.2-4369. Proscribed participation by public employees in procurement transactions
§ 2.2-4370. Disclosure of subsequent employment
§ 2.2-4373. Participation in bid preparation; limitation on submitting bid for same procurement
§ 2.2-4374. Purchase of building materials, etc., from architect or engineer prohibited
§ 2.2-4375. Certification of compliance required; penalty for false statements
§ 2.2-4376. Misrepresentations prohibited
§ 2.2-4376.1. Contributions and gifts; prohibition during procurement process