(a) If a dispute occurs between a vendor and a local governmental entity concerning payment of a payment request or an invoice, the local governmental entity shall resolve disagreement as provided in this section. The Department of Property and Procurement shall establish a dispute resolution procedure to be followed by the local governmental entity in cases of disputes. The procedure must provide that proceedings to resolve the dispute must be commenced not later than 45 days after the date on which the payment request or proper invoice was received by the local governmental entity, and must be concluded by final decision of the local governmental entity not later than 60 days after the date on which the payment request or proper invoice was received by the local governmental entity. The procedures do not constitute an administrative proceeding that prohibits a court from deciding de novo any action arising out of the dispute. If the dispute is resolved in favor of the vendor, then interest must begin to accrue as of the original date the payment became due.
(b) In an action to recover amounts due under this subchapter, the court shall award court costs and reasonable attorney’s fees to the prevailing party, including fees incurred through any appeal, if the court finds that the non-prevailing party withheld any portion of the payment that is the subject of the action without any reasonable basis in law or fact to dispute the prevailing party’s claim to those amounts.