Figuring out how Louisiana state and local governments can pay private businesses for their work on public projects more quickly is the aim of a new state task force that launched Monday.
The Public Projects Payments Task Force was set up this year through legislation sponsored by Sen. Glen Womack, R-Harrisonburg, who chairs the task force.
Womack says the task force wants to identify factors that may be getting in the way of timely payments to contractors — and also propose a more streamlined process that attracts more competitive bids on government work.
“If you can pay as you go, the contractor has got more energies to come back and bid your next project, because he knows he’s gonna get paid in a timely manner,” he said. “And the bids at that point get more competitive, so our dollar goes further.”
Womack is the former owner of Womack & Sons Construction Group and current owner of JCP Management, which manages water utilities for local municipalities and rural non-profits.
At the Monday kickoff meeting, Department of Transportation and Development engineers briefed the panel on its handling of contractor payments.
The transportation department is required under law to make payments within 30 days of a due date. So far in 2024, this benchmark has been met in the case of 78% of project payments, said Mike Vosberg, deputy chief engineer at DOTD.
The transportation department takes bids on between $800 million and $1 billion of “construction value” every year, DOTD Chief Engineer Chad Winchester said.
DOTD was the first of a number of government entities that will be called on by the committee to provide data and feedback in the coming months.
Louisiana Municipal Association Deputy Director Richard Williams also took questions from task force members on Monday. That association represents Louisiana’s 304 municipalities.
“We want to hear from you what are the areas that municipalities could do better on: How could we assist you in getting paid more quickly, more timely and more accurately,” Williams told the panel.
Under law, the task force consists of 15 members and must submit a report of its findings to the Legislature before Jan. 31.
Along with three state lawmakers, organizations with seats on the task force include:
- American Council of Engineering Companies of Louisiana
- American Institute of Architects, Louisiana Chapter
- American Subcontractors Association of Greater Baton Rouge
- Associated Builders and Contractors, Louisiana Chapter
- Louisiana Asphalt Pavement Association
- Louisiana Associated General Contractors
- Louisiana Concrete Association
- Louisiana Surety Association
- Louisiana Municipal Association
- Police Jury Association of Louisiana
- Department of Transportation and Development
- Division of Administration Office of Facility Planning and Control