• SophieB

    Here is the big problem with making the Prompt Contracting Law work in New York. The law allows the interest for late contracts to be waived. Although State agencies are no longer allowed to require a nonprofit to sign a waiver of interest (they could until 2007), it can be done by agreement between the two parties. If we’re really honest about it, it is just semantics. Most nonprofits are going to agree to sign the waiver so that are seen as a cooperative provider and future contracts are not jeopardized. Because of the waivers, the interest costs never show up in financial reports as wasted money. Therefore, nobody pays attention to it since there isn’t really a cost involved for the State. I would suspect if State agencies started having to pay the interest and therefore hundreds of thousands if not millions of dollars of additional costs started showing up in their financial reports simply because the agencies were not fulfilling their responsibilities and following the law, we would see a good deal of improvement a good deal faster.

  • Kim Lerner

    I have yet to hear or read an explanation as to why these contracts are late…what is the reason?