We recently asked members to tell us about their experience with slow or delayed payment from PennDOT and here is what we learned.
Nearly 82 percent of those responding have experience slow payment, which is payment received more than 30 days after estimate approval. There were several running themes in the comment section.
First, end of fiscal year seems to generate the most frequent problems. About half of respondents indicated that slow pay was more prevalent at the end of the fiscal year. As a result of that, APC staff met recently with State Treasurer Joe Torsella to determine if there are issues with Treasury. Several follow-up efforts are planned with his staff.
The Comptroller reviews all payments before they are cleared and we are investigating the pace of review. Also, we learned that during the 2015 budget delay, the General Fund actually borrowed money from the Motor License Fund, causing cash flow issues for the MLF. APC is now looking into the legality of that borrowing and potential legislation.
Many respondents noted that getting the field inspector to process the estimate, or work order, caused more delays than the payment system. Third, subcontractors find that their invoices are sometimes not submitted in a timely manner.