SB1136 Summary

• Requires prompt payment of construction contract estimates within 14 days of certification and approval, with estimates deemed approved after 7 days unless owner issues specific written findings of deficiencies.

• Mandates contractors and subcontractors pay subordinate subcontractors and material suppliers within 7 days of receiving progress payments, with interest penalties of 1% per month for late payments exceeding 7 days.

• Allows contractors and subcontractors to request interim payments for changed or additional work on a monthly basis based on costs incurred, pending final determination of total amount owed.

• Entitles successful parties in disputes or arbitration to recover reasonable attorney fees and costs related to contract payment claims.

• Applies prompt payment requirements to school districts, Arizona Department of Transportation, and other state agencies procuring public works, with requirements substantially equivalent across procurement methods.