State agency is asserting that after an invoice from an Independent Contractor is turned in after 30 days 15% will be withheld from the total & after 60 days, not paid at all... is this even legal!? I am in the state of NM, USA.
My contract came this past week and in the "Compensation" section, it states that "Contractor must invoice __ within thirty (30) days of completion of the assignment. Later billing may result in reduced compensation and or no payment. If the invoice is not received within thirty (30) days of the service date, a fifteen percent (15%) reduction of the total invoice amount will be subtracted. If the invoice is not received within sixty (60) days of the service date, the invoice will not be paid."
Last fiscal year, the 15% reduction was added into the contract without bringing attention that the contract has changed from previous years and I signed it that way, not fully reading it since it "looked like previous year's contracts" which is MY bad! I own that... but now this fiscal year they are adding the 60 day stipulation that invoices not turned in by 60 days don't have to be paid at all. I know if I sign it, I am agreeing to it, even if I did not know the contract had initially changed. BUT can a state or any agency even do this sort of thing when services were rendered and are due?
Last fiscal year, after the 15% reduction change I learned the hard way after I had turned in an invoice a few days after the 30 day mark and it was reduced 15%. I have tried hard to keep up with my invoicing but there are times when I am out of town or it is an especially busy season, that I fail to meet the mark. I think it is way too harsh but can anyone answer if it is legal or if I have any recourse to recover monies that were withheld?