HB71 Summary

• Amends Section 39-2-12 and 41-16-3 of the Alabama Code to establish a 45-day maximum payment deadline for public works contracts, making any contractual agreement to extend this period unenforceable.

• Requires awarding authorities to pay one percent monthly interest (12 percent annually) on undisputed amounts not paid within 45 days after work acceptance and contract terms are fulfilled.

• Mandates that awarding authorities certify and provide proof of available funds to pay contractors before contract execution and prohibit material changes to financial arrangements without prior notice.

• Entitles contractors not receiving timely payment to recover reasonable attorney's fees, court costs, and reasonable expenses in addition to payment and interest through civil action.

• Exempts contracts administered by the Alabama Building Commission and contracts entered into for emergency response and recovery from these payment provisions; effective the first day of the third month following passage.