It shall be the duty of the chief procurement officer to insert in any contract let for any public improvement or other construction, water or sewer work, a condition to the effect that the chief procurement officer may, whenever he shall have reason to believe that the contractor has neglected or failed to pay any subcontractor, workman, or employee for work performed on or about any public improvement or other construction, water or sewer work contracted for, order and direct that no further vouchers or estimates be issued and no further payments be made upon such contract, until he shall be satisfied that such subcontractors, workmen and employees have been fully paid.
Whenever the chief procurement officer shall notify the contractor by notice personally served, or by leaving a copy thereof at the contractor's last known place of abode, that no further vouchers or estimates will be issued or payments made on the contract until the subcontractors, workmen, and employees have been paid, and the contractor shall neglect or refuse, for the space of ten days after such notice shall have been served, to pay such subcontractors, workmen, or employees, the city may apply any money due, or that may become due, under the contract to the payment of such subcontractors, workmen, and employees without other or further notice to said contractor. The failure of the city, however, to retain and apply any of such monies, or of the chief procurement officer to order or direct that no vouchers or estimates shall issue or further payments be made shall not, nor shall the paying over of such reserved percentage without such subcontractor, workman, or employee being first paid, in any way affect the liability of the contractor or of his sureties to the city or to any such subcontractor, workman, or employee upon any bond given in connection with such contract.
(Prior code § 26-14; Amend Coun. J. 7-19-00, p. 38206, § 1)