SB 1012 Summary

• Requires owners of private construction projects issued for bid to specify in writing the payment frequency and time period for payments to prime contractors, with this information displayed on general specifications and first page of bid plans.

• Establishes that if owners fail to specify payment terms, monthly progress payments are required with payment due within 28 calendar days after receipt of billing.

• Requires prime contractors to pay subcontractors within 10 calendar days of receiving payment from the owner, or as otherwise agreed by the parties.

• Allows prime contractors and subcontractors to suspend work if payment is not received within 10 calendar days of the due date, after providing 10 calendar days written notice via certified mail or verifiable service.

• Exempts single-, two-, three-, and four-family dwellings from the act's requirements and voids any contract provisions that waive rights under the act or require disputes be governed by another state's laws.