AL HB547

Requires contractors to timely pay subcontractors for work completed on public works contracts within 7 days of the contractor receiving payment from the owner, or per agreed terms if specified in the contract.

Mandates contractors pay subcontractors within 10 business days of receiving funds for public works projects, superseding the standard 7-day requirement.

Establishes that retainage (money withheld from payments) cannot exceed 10 percent of estimated work value, with no further retainage after 50 percent project completion.

Imposes a 1 percent per month (12 percent per annum) interest penalty on any party that fails to make timely payments or withholds retainage in excess of the allowed limits.

Becomes effective on the first day of the third month following passage and approval by the Governor.