When might a CO withhold payment, and what is the process?

• A. Documentation complete or disputes resolved.
• B. When documentation is incomplete or disputes exist; notify the vendor, request missing items, and set a deadline.
• C. Pay immediately regardless.
• D. Disregard the issue.

Answer: (B)

Holding payment is appropriate when the invoice isn’t supported by the required documentation or when there is an unresolved dispute affecting the charge. In that scenario, the Certifying Officer should communicate in writing with the vendor, specify exactly what items are missing or what issues need resolution, request the missing documentation, and set a reasonable deadline for submission. This protects government funds by ensuring payments go only to properly documented, undisputed charges, and it keeps a clear record of why the payment is being held. Once the missing items are provided or the dispute is resolved, payment should be processed promptly according to the contract terms, with the holding action closed out. If informal resolution isn’t possible, formal dispute resolution procedures should be followed.