SB 235 — PUBLIC CONTRACTS: Provides relative to payments under contract by public entities. (gov sig) (EN SEE FISC NOTE GF EX)

SLS 26RS-496 ENGROSSED Regular Session ENROLLED SENATE BILL NO.

235 BY SENATOR WOMACK PUBLICAND CONTRACTS.REPRESENTATIVE WALTERS AN ACT To amend and reenact R.S.

Provides relative to payments under contract by public entities.

(gov sig) AN ACT To amend and reenact R.S.

to provide for attorneyfeesattorneyfeesand and interest;

to provide for an effectivedate;effective date;

38:2248(C), a public entity shall not withhold liquidated damages contested by the contractor from any payments or monies otherwise due, provided that payment to the contractor shall not prejudice the ability of a public entity to assert a claim for liquidated damages against thecontractorinanordinaryproceeding.Theprevailingpartyshall be Pageentitled 1to ofrecoverreasonableattorney 4fees Coding:in connection with a public entity's claim for liquidated damages in an ordinary proceeding.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-496 ENGROSSED SB NO.

235 entitled to recoverreasonable attorney feesin connection with a public entity's claim for liquidated damages in an ordinary proceeding.

Any public entity failing to make any progressive stage payments arbitrarily or without reasonable cause, or anyanyfinal final payment when due as provided inthisSection,shallbesubjecttomandamustocompelthepaymentofthesumsdue underPage the1 contract up to the amount of the2 appropriationCoding: made for the award and execution of the contract, including any authorized change orders, together with attorney fees and interest as provided for by this Section.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SB NO.

235 ENROLLED under the contract up to the amount of the appropriation made for the award and execution of the contract, including any authorized change orders, together with attorney fees and interest as provided for by this Section.

PagePRESIDENT 2OF ofTHE 4SENATE Coding:SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

WordsPage which2 areof struck2 throughCoding: are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-496 ENGROSSED SB NO.

235 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared bySenate Legislative Services.

The keyword, summary, and digest do not constitute part of the law or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] DIGEST SB 235 Engrossed 2026 Regular Session Womack Present law requires public entities to promptly pay all obligations arising under a public contract, including change orders, when the obligations are due and payable.

Requires that if the public entity fails to make any progressive stage payment, without reasonable cause, within 45 days after receipt of a certified request for payment, the entity is liable for reasonableattorneyfeesandinterestchargedat0.5%accumulateddaily,nottoexceed15%.

Proposed law retains present law.

Present law requires that if the public entity fails to make final payment after formal final acceptance and within 45 days after receipt of a clear lien certificate, the entity is liable for reasonableattorneyfeesandinterestchargedat0.5%accumulateddaily,nottoexceed15%.

Proposed law retains present law.

Proposedlawprohibitspublicentitiesfromwithholdingliquidateddamagescontestedbythe contractor from any payments or monies otherwise due, provided that payment to the contractordoesnotprejudiceapublicentity'sabilitytoassertaclaimforliquidateddamages against the contractor in an ordinaryproceeding.

Proposedlawprovidesthattheprevailingpartyisentitledtorecoverreasonableattorneyfees in connection with a public entity's claimfor liquidated damages in an ordinaryproceeding.

Proposed law provides that a public entity is entitled to interest on liquidated damages recovered charged at 0.5 % accumulated daily, not to exceed 15%, accruing from the date of payment by the public entity of contested liquidated damages.

Present law subjects public entities to mandamus for failing to make progressive stage payments arbitrarily or without reasonable cause, or any final payment when due.

Present law provides that the mandamus compel the payment of amounts due under contract up to the appropriation made for the award and execution of the contract or change orders.

Proposedlawaddsthatthemandamuscompelthepaymentofattorneyfeesandaccumulated interest to the contractor.

Proposed law provides that if a public entity prevails in a mandamus proceeding, the contractor is liable for reasonable attorneyfees.

Proposed law provides that anyclaim bya public entityto recover liquidated damages shall not be subject to the mandamus proceeding.

Effective upon signature of the governor or lapse of time for gubernatorial action.

(Amends R.S.

38:2191(C) - (E);

Adds R.S.