House Bill 20-1046 Summary

• Requires property owners to make monthly partial payments of at least 95% of completed work value to contractors on construction contracts valued at $150,000 or more.

• Property owners must pay any withheld percentage within 60 days after satisfactory contract completion and final work acceptance.

• Contractors must pay subcontractors within 30 calendar days of receiving payment, and subcontractors must pay suppliers and laborers within 30 days, with maximum 5% withholding allowed at each level.

• Subcontractors must submit a list of suppliers, sub-subcontractors, and laborers to the contractor when requesting payment.

• Applies to commercial property and multiple-unit residential projects but excludes single-family dwellings, multi-family dwellings with 4 or fewer units, and public entity contracts; violations subject to 1.5% monthly interest and attorney fees awarded to prevailing party in enforcement lawsuits.