Senate Bill No. by Senator Womack amends and reenacts R.S. 38:2191(C) through (E) and enacts R.S. 38:2191(F) to enhance regulations regarding payments under public contracts. The bill stipulates that public entities are prohibited from withholding liquidated damages contested by contractors from any payments due, ensuring that such payments do not hinder the public entity's right to assert claims for liquidated damages. Additionally, it clarifies that public entities failing to make timely payments, whether progressive or final, without reasonable cause, may be compelled through mandamus to pay the amounts due, including attorney fees and interest.
Furthermore, the bill specifies that a public entity's claim for liquidated damages will not be subject to mandamus proceedings, thereby protecting contractors from potential financial penalties while still allowing public entities to pursue claims for damages. The effective date of the bill is contingent upon the governor's signature or the expiration of the time for bills to become law without signature.
Statutes affected: SB235 Original: 38:2191(C)