Common use of Contested Charges Clause in Contracts

Contested Charges. i. Under special circumstances in which (1) DSP provides services outside the scope of this Agreement, or (2) RSC disagrees with the charges for Services within the scope of this Agreement, payment amounts for services may differ from invoiced amounts. In such cases, DSP shall be put on notice that final payment in full is contingent on a determination of reasonableness with respect to all invoiced charges. Charges which appear to be invalid, disallowed, or unreasonable (“Contested Charges”) will be researched and challenged, and that portion of the invoice held in abeyance until a settlement can be reached. ii. Upon determining that an invoice contains Contested Charges, the RSC shall promptly notify the DSP, in writing, that is has identified Contested Charges and the basis for the determination. RSC reserves the right to reduce or disallow the amount of any payment for Contested Charges. iii. A DSP may not institute legal action unless a settlement cannot be reached within thirty (30) days of notification. The provisions of this section do not relieve an agency of its prompt payment obligations with respect to those charges which are not in dispute (Code of Virginia, § 2.2-4363).

Appears in 2 contracts

Sources: Subcontractor Agreement, Subcontractor Agreement