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AN ORDINANCE TO AMEND THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA, 1988, BY ADDING SECTION 12-188, PERTAINING TO FINANCE. BE IT ORDAINED by the Council of the City of Portsmouth, Virginia, that Section 12-188 of the Code of the City of Portsmouth, Virginia, 1988, be ordained to read as follows: Section 12-188. Payment clauses Contracts. Any contract awarded by the City shall include: 1. A payment clause which obligates the contractor to take one of the two following actions within seven days after receipt of amounts paid to the contractor by the City for work performed by the subcontractor under that contract: a. Pay the subcontractor for the proportionate share of the total payment received from the agency attributable to the work perfcrmed by the subcontractor under that contract; or b. Notify the agency and subcontractor, in writing, of his intention to withhold all or a part of the subcontractor's payment with the reason for nonpayment. 2. An interest clause that obligates the contractor to pay interest to the subcontractor on all amounts owed by the contractor that remain unpaid after seven days following receipt by the contractor of payment from the City for work performed by the subcontractor under that contract, except for amounts withheld as allowed in subsection (1)(b) of this section. 3. An interest rate clause stating, "Unless otherwise provided under the terms of this contract, interest shall accrue at the rate of one percent per month." Any such contract awarded shall further require the contractor to include in each of its subcontracts a provision requiring each subcontractor to include or otherwise be subject to the same payment and interest requirements with respect to each lower-tier subcontractor. A contractor's obligation to pay an interest charge to a subcontractor pursuant to the payment clause in this section may not be construed to be an obligation of the City. A contract modification may not be made for the purpose of providing reimbursement for such interest charge. A cost reimbursement claim may not include any amount for reimbursement for such interest charge.