Indiana Code
Chapter 12. Public Work Projects
36-1-12-12. Final Payment; Requirements; Claims by Subcontractors, Laborers, or Suppliers; Disputes

Sec. 12. (a) When a public work project is to be performed, the board shall withhold final payment to the contractor until the contractor has paid the subcontractors, material suppliers, laborers, and those furnishing services. However, if there is not a sufficient sum owed to the contractor to pay those bills, the sum owed to the contractor shall be prorated in payment of the bills among the claimants entitled to payment.
(b) To receive payment a subcontractor, material supplier, laborer, or person furnishing services must file a claim with the board not later than sixty (60) days after that person performed the last labor, furnished the last material, or performed the last service as provided in section 13 of this chapter.
(c) If there is no dispute among the claimants, the board shall pay the claim from the money due the contractor and deduct the amount of the claims from the contract price. The board shall take a receipt for each payment made on a claim.
(d) If there is a dispute among the claimants, the board shall retain sufficient money to pay the claims until the dispute is settled and the correct amount is determined. However, the board may make a final and complete settlement with the contractor after thirty (30) days after the date of the completion and acceptance of the public work if the contractor has materially fulfilled all of its obligations under the public works contract.
(e) If the board receives a claim from a subcontractor or a material supplier under this section, the board shall withhold the amount of the claim until the claim is resolved under this section.
(f) A claim form must be signed by an individual from the political subdivision or agency who is directly responsible for the project and who can verify:
(1) the quantity of a purchased item; or
(2) the weight or volume of the material applied, in the case of a road, street, or bridge project.
[Pre-Local Government Recodification Citations: 5-16-1 part; Part new.]
As added by Acts 1981, P.L.57, SEC.38. Amended by P.L.329-1985, SEC.23; P.L.75-2012, SEC.9.

Structure Indiana Code

Indiana Code

Title 36. Local Government

Article 1. General Provisions

Chapter 12. Public Work Projects

36-1-12-0.1. Application of Certain Amendments to Chapter

36-1-12-1. Application of Chapter; Alternatives to Chapter

36-1-12-1.2. Definitions

36-1-12-1.4. Repealed

36-1-12-1.6. Repealed

36-1-12-2. "Public Work"

36-1-12-2.2. Repealed

36-1-12-2.4. Repealed

36-1-12-2.6. Repealed

36-1-12-3. Public Work Projects

36-1-12-3.5. Contracts for Engineering, Architectural, or Accounting Services; Applicability of Restrictions of General Statutes

36-1-12-4. Bidding Procedures for Projects Costing More Than Certain Amounts

36-1-12-4.5. Bond or Certified Check; Filing by Bidders

36-1-12-4.7. Procedures for Inviting Quotes; Applicable Dollar Amounts

36-1-12-4.9. Alternate Procedures for Projects Costing Less Than $150,000

36-1-12-5. Procedures for Inviting Quotes; Applicable Dollar Amount

36-1-12-6. Contracts; Notice to Proceed; Failure to Award and Execute Contract and to Issue Notice; Election by Bidder to Reject Contract

36-1-12-7. Public Buildings; Approval of Plans and Specifications by Licensed Architect or Engineer

36-1-12-8. Road, Street, or Bridge Work; Open Price Provisions; Price Adjustments of Materials; Limitations

36-1-12-9. Emergencies; Contracts by Invitation

36-1-12-10. Plans and Specifications; Approval by Various Agencies

36-1-12-11. Completion of Project; Procedure

36-1-12-12. Final Payment; Requirements; Claims by Subcontractors, Laborers, or Suppliers; Disputes

36-1-12-13. Contract Provision for Payment of Subcontractors, Laborers, or Suppliers

36-1-12-13.1. Payment Bond for Public Work Projects in Excess of $200,000; Claims; Suits on Bond; Waiver of Payment Bond

36-1-12-14. Contracts in Excess of $200,000; Retaining Portions of Payments; Escrow Agreements; Performance Bonds; Payment on Substantial Completion; Actions Against Surety Contracts Less Than $250,000

36-1-12-15. Contractor Requirements; Antidiscrimination Provisions

36-1-12-16. Necessity of Compliance With Chapter

36-1-12-17. Road or Street Work Contracts; Timely Payment of Claims; Final Payment; Interest for Late Payment

36-1-12-18. Change or Alteration of Specifications; Change Orders

36-1-12-19. Dividing Cost of a Single Public Work Project Into Two or More Projects; Prohibition; Penalty

36-1-12-20. Trench Safety Systems; Cost Recovery

36-1-12-21. Plumbing Installations; Proof of Licensure

36-1-12-22. Repealed

36-1-12-23. Application of Ic 5-22-16.5 to Award of Contracts Under Article

36-1-12-24. Drug Testing of Employees of Public Works Contractors; Requirements for Use of Previously Filed Employee Drug Testing Program