MN HF2451

Prime contractors and all subcontractors must pay undisputed invoices from subcontractors and material suppliers within ten days of receipt.

Late payments incur interest of 1-1/2 percent per month, with a minimum monthly penalty of $10 for unpaid balances of $100 or more.

Contractors and subcontractors who win civil actions to collect interest penalties must be awarded costs, disbursements, and attorney fees.

Prime contractors or subcontractors may suspend work if undisputed payments are not received within ten days.

Owners may retain up to 5 percent from progress payments, but may reduce or eliminate retainage at their discretion if work progresses satisfactorily; monthly progress payments are required unless the contract provides otherwise.

All provisions apply to building and construction contracts executed on or after August 1, 2016.