H.B. 380 Summary

• Owners must pay contractors within 35 days of receiving a written payment request for properly performed work or furnished materials, less any authorized withholdings or retainage provisions.

• Contractors must pay subcontractors and material suppliers within 10 calendar days of receiving payment from the owner, and subcontractors must similarly pay lower-tier subcontractors and material suppliers within 10 calendar days.

• Parties failing to make timely payments owe 18% annual interest beginning on the day after the deadline, plus the original amount due and interest must be paid in full.

• Payment obligations cannot be waived by contract agreement; if contract terms allow longer payment periods or lower interest rates, the provisions in this section take precedence.

• Civil actions to recover unpaid amounts must be filed within 30 days of the due date, with prevailing parties entitled to recover interest, attorney fees, and court costs unless the court determines such fees would be inequitable.