8.1 General Payment Principles
8.1.1 All contracts must specifically provide for methods and timing of payments to be made to the contractor. These provisions should be as detailed as possible, specifying all conditions which must be met by the contractor in order to submit a request for payment and to determine whether a payment is due.
8.1.2 Except as otherwise authorized by these regulations, payment may be made only after contractor performance has occurred to justify the payments under the contract (e.g., the contractor has incurred a cost and submitted an invoice for an item for which the contractor appears to be entitled to cost reimbursement; the contractor appears to have performed services for which a fair value has been specified as a part of the contract; the contractor appears to be entitled to a progress payment in accordance with the contract upon determination of that extent of performance; goods have been delivered and inspected by the Using Department, appear to be acceptable, and an invoice has been submitted for payment in accordance with the contract).
8.1.3 Certifying whether payments are due the contractor is the responsibility of the Using Department and must be done as expeditiously as possible. The Using Department may be required to justify any failure to expedite payments upon inquiry by the Director.
8.2 Incentive Payments
Contracts may provide for incentive payments in exchange for enhanced contractor performance beyond contract specifications, terms and conditions.
8.3 Progress or Partial Payments
The approval and recommendation for payment by a Using Department of an invoice submitted by contractor for progress payments or partial payments pursuant to the terms of a contract constitute certification that a contractor has performed in accordance with the contract and has earned the payment approved, that the Using Department has performed all inspection necessary, including testing, to insure proper performance, and the Using Department accepts the contractor's performance as complying with the contract for purposes of earning the contract payment. Certification of approval for a progress or partial payment does not constitute waiver of any rights of the County against the contractor for failure to perform pursuant to any of the terms, conditions, or specifications of the contract.
8.4 Advance Payments
A contract may provide for advance payment if the advance payment is part of a commercially acceptable practice as in the case of equipment and software maintenance, periodical subscriptions, registrations, travel, catering service, licensing fees, and insurance premiums. In other cases, the Director of Finance and the Director may approve an advance payment if they determine that unique circumstances exist which indicate that an advance payment is in the best interest of the County.
8.5 Retention
8.5.1 In contracts for which retention is provided (generally construction contracts), Using Departments must insure that all retention amounts provided for in the contract are maintained by the County. Partial reduction or final release of retention must be authorized, in writing, by the Director.
8.5.2 Any changes to levels of retention provided in the contract must be approved by the Director, in writing, before the change in the contract retention may become effective.
8.5.3 If a contractor has furnished 100% payment security and 100% performance security under a contract for construction, retainage must comply with the requirements established under the Maryland Little Miller Act.
8.6 Payment of Interest
If interest is payable by the County under Section 11B-34 of the Code, the amount of the interest is calculated by using the interest rate paid by 5 year U.S. Treasury Bills as of the date interest first begins to accrue under Section 11B-34.
8.7 Credit and Debit Card Procurements
Credit and debit cards may be utilized as authorized by the Director of Finance. The authorization of the Director of Finance must designate the following:
8.7.1 Each person authorized to use the credit card;
8.7.2 The monetary limits for any single expenditure and class of expenditures that may be incurred under the credit card;
8.7.3 An itemization or description of all allowable purchases;
8.7.4 A statement of all limitations with respect to use of the card;
8.7.5 A statement of any limitations with respect to date of usage of the card or duration of authorization.