CT HB05265

Reduces payment timeline for small contractors from 30 days to 25 days after the due date of payment on contracts awarded under sections 4a-60g to 4a-60i, unless otherwise agreed in writing.

Reduces payment timeline for contractors to subcontractors and suppliers from 30 days to 25 days after receiving payment from the owner that encompasses the subcontractor or supplier's work or materials.

Requires contractors to include provisions in subcontracts requiring subcontractors and suppliers to pay their own subcontractors and suppliers within 25 days of receiving payment that encompasses that work or materials.

Establishes that ten days after notice of non-payment, the responsible party becomes liable for 1% monthly interest, and may be required to place funds in an interest-bearing escrow account.

Takes effect October 1, 2018 and applies to construction contracts, allowing parties to agree to alternative payment terms in writing.