HB 13-1090: Construction Prompt Payment Reform Act

• Creates new payment requirements for private construction contracts over $100,000 and public construction agreements, mandating regular progress payments approximately every 30 days for work actually performed.

• Limits retainage to 5% of each progress payment and requires contractors to pass payments to subcontractors within 5 days or by end of billing cycle; accrues 12% annual interest on unpaid amounts.

• Allows extended billing cycles up to 60 days only if specified in bold 14-point type on contract documents and project plans with proper notice.

• Authorizes contractors and subcontractors to suspend work after 15 days notice if payments are not made, and to bill at cost plus 15% overhead for change directives without agreed pricing after 2 months.

• Voids as unenforceable any contract provisions that violate these payment terms; takes effect July 1, 2013 for contracts made on or after that date.