LA HB638

Owners must pay contractors within 35 days of receiving a written payment request for properly performed work or suitably stored materials on immovable property construction projects.

Contractors must pay subcontractors and suppliers within 7 days of receiving payment from the owner (reduced from 14 days under current law).

Late payment penalties increase from 0.5% to 1.5% per day of the amount due, with the 15% cap on total penalties removed.

Any waiver of the prompt payment provisions is absolutely null, and obligors may bring legal action to collect payments with court costs and attorney fees awarded to the prevailing party.

Provisions do not apply to construction or improvements on residential property.