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

SB 235 modifies Louisiana's rules for payments between public entities (like cities or state agencies) and contractors. It prevents public entities from withholding payments to contractors for disputed pre-agreed penalties (liquidated damages), while still allowing the public entity to pursue those penalties separately. The bill requires timely payments for work completed, with penalties like court-ordered payment (mandamus), attorney fees, and interest if payments are delayed without good reason. It also clarifies that declaring a public works contract invalid doesn't cancel payments already owed for work performed, including overhead and profit. This directly affects contractors working on public projects by strengthening their right to receive timely payments under the contract terms.