Overview of Requirements
Disputes Between State Agencies and Vendors

If a state agency believes that an invoice from a vendor is incorrect, the agency must notify the vendor no later than the 21st calendar day after the date the agency received the invoice. State agencies must include a detailed statement of the amount of the invoice which is disputed in the notification. State agencies may withhold from required payments no more than 110 percent of the disputed amount.

The requirements described in this section may not apply if the invoice is not mailed to the agency in strict compliance with the instructions (if any) on the purchase order relating to the payment.

If there is a dispute with the invoice, the vendor must be notified by email or telephone within 21 calendar days of receipt of the invoice.

Resolved Disputes

If a dispute between a state agency and a vendor is resolved to be:

• In the vendor’s favor — the agency is liable to the vendor for interest on all invoices for which the vendor has not received payment. This interest must be calculated from the original due date of the payment, as if no dispute ever existed.
• In the agency’s favor — the vendor that submitted the original invoice must submit a corrected invoice to the agency. Interest starts accruing if the corrected invoice is not paid by the appropriate date.

Documentation Requirements [+]

Source [+]