City Council Vice President Helena Moreno is addressing the issue of late payments to subcontractors. The proposed ordinance, Cal. No. 35,177, would require prime contractors to pay subcontractors within 30 days, the same schedule the city uses for its vendors and contractors. The measure aims to ensure subcontractors are paid on time and City-funded projects stay on schedule, according to the City of New Orleans.
The initiative addresses a delay in payments to subcontractors. While the city pays prime contractors within 30 days, subcontractors often wait longer. "Paying subcontractors and suppliers on time isn't only about fairness, it’s about ensuring City-funded projects stay on schedule, small businesses and their workers can get paid, and our residents see timely results," Moreno said. The legislation was supported by The Collaborative, a group representing Black and minority businesses, which helped identify the payment issue and shape the ordinance, as reported by the City of New Orleans.
The City of New Orleans is set to consider Ordinance Cal. No. 35,177, which aims to ensure timely payments to subcontractors and support small, disadvantaged businesses. The ordinance, drafted by City Administration representatives and Moreno's Council office, passed the Economic Development Committee and is expected on the Consent Agenda at the City Council meeting on August 24. It is designed to create a more efficient payment process and strengthen the financial stability of local businesses.
