MO HB1702

Requires public owners to make progress payments to contractors monthly or per lump sum contract terms, with payment estimates verified by project architect, engineer, or public owner rather than just "determined"

Reduces standard retainage (money withheld) from subcontractors from ten percent to five percent, and requires contractors to release subcontractor retainage within fifteen days of subcontract completion

Requires contractors to pay subcontractors and material suppliers within fifteen days of receiving payment from the public owner, with interest charges of 1.5% per month for late payments without reasonable cause

Allows public owners to reduce or eliminate retainage if work is proceeding satisfactorily, and permits withholding of two hundred percent of the value of remaining minor items until completion

Clarifies circumstances under which contractors, subcontractors, and public owners may withhold payment, including unsatisfactory progress, defective work, disputes, third-party claims, and non-compliance with contract terms