Court of Appeal of Louisiana

Case no.: 56,765-CA
Date filed: February 25, 2026

A Louisiana appellate court has ruled final payment was not due despite certification of substantial completion, recording of a “clear lien” certificate and occupancy and use of the public facility. The construction contract required approval of a final payment application by the project architect, which had withheld approval because of liquidated damages and punch-list disputes.

Bossier Parish awarded a fixed-price contract to Boggs & Poole Contracting Group Inc. (B&P) to construct a public library facility. The completion deadline for the project, as extended, was July 5, 2023. The contract called for liquidated damages for late completion of $2,500 per day.

The project architect, Prevot Design Services, certified substantial completion of the work on December 4, 2023. The parish voted to accept substantial completion, the clerk of courts issued a “clear lien” certificate and the library opened to the public.

B&P submitted a final payment application for the contract balance of $626,378. The contract required a certificate from the project architect that the work was complete and final payment was due. However, the architect refused to certify final payment, contending the Parish was owed $377,500 in liquidated damages for 151 days of unexcused late completion. The architect also alleged a noncompliant sprinkler system and $48,000 in punch-list work. B&P disputed these back charges, but the parties were unable to resolve their differences.

B&P sued the Parish and Prevot Design. The suit against the parish sought a court order mandating payment of the contract balance pursuant to the state Prompt Payment statute. The law requires public project owners to make final payment within 45 days of the date payment becomes due under the contract. The statute also says, “The provisions of this Section shall not be subject to waiver by contract.”

The trial court refused to order final payment because the project architect had not approved the final payment application. B&P appealed, arguing that the 45-day period was triggered by the recording of the “clear lien” certificate. By predicating final payment on the architect’s approval, the Parish was attempting to waive the Prompt Payment statute requirement by contract.

The Court of Appeal of Louisiana said release of final payment could only be mandated when final payment was due under the terms of the contract. This contract made project architect approval a condition precedent to final payment.

“We [interpret] La. R.S. 38:2191(D) to mean that final payment can be compelled only when final payment is due under the contract. Here, final payment is not due under the contract because the project architect, within its discretion, has not approved the final payment application.”

Although the effect of this contract requirement was to extend the 45-day payment period, the court ruled there had been no contractual waiver. “[T]he contract terms making Prevot’s approval of final payment a prerequisite to final payment does not run afoul of Subsection (C)’s prohibition because the contract contained no express waiver of the protections afforded by the statute.”

As the court noted, the project architect had discretion under the contract to protect the owner’s interests. It seems, however, that withholding the entire $626,378 contract balance was heavy handed.

The contractor quite wisely offered to agree to a withholding to cover punch list and disputed items, while releasing the balance of the final payment. The architect refused, holding the entire contract balance as leverage in the dispute.

Participants:
For Bossier Parish: Geoffrey D. Westmoreland
For Boggs & Poole Contracting: Scott C. Sinclair

Before: Judges Robinson, Marcotte, and Ellender

Opinion by: Judge Robinson

Outcome: Judgment of trial court affirmed

Source: Please click here to read the complete opinion.