HB 4892 Summary

• Mandates that construction contracts for transportation projects include progress payments to contractors, changing the requirement from optional to mandatory.

• Requires the Department of Transportation to pay contractors within 14 days of a monthly submission date for completed items without exceptions, and within 75 days for final payments after project completion.

• Imposes a penalty of 0.75% monthly interest on any progress or final payment not made within 75 days of the due date, applied each month the payment remains outstanding.

• Establishes a dispute resolution process allowing contractors to raise exceptions to payment offers within 45 days, while requiring the department to pay the offered amount within 75 days regardless of pending disputes.

• Applies to all construction contracts entered into after January 1, 2014, and requires the Department of Transportation to adopt uniform prompt payment practices complying with these provisions.