§1114. Contractor's and subcontractor's payment obligations






Payment to a subcontractor for work is subject to the following conditions. [1993, c. 461, §1 (NEW).]








1. Contractual agreements. 
The contractor or subcontractor shall pay a subcontractor or material supplier strictly
in accordance with the terms of the subcontractor's or material supplier's contract.


[
1993, c. 461, §1 (NEW)
.]








2. Disclosure. 
Notwithstanding any contrary agreement, a contractor or subcontractor shall disclose
to a subcontractor or material supplier the due date for receipt of payments from
the owner before a contract between those parties is entered. Notwithstanding any
other provision of this chapter, if a contractor or subcontractor fails to accurately
disclose the due date to a subcontractor or material supplier, the contractor or subcontractor
is obligated to pay the subcontractor or material supplier as though the 20-day due
dates in section 1113, subsection 3 were met.


[
2001, c. 471, Pt. A, §13 (AMD)
.]








3. Invoices. 
Notwithstanding any contrary agreement, when a subcontractor or material supplier
has performed in accordance with the provisions of a contract, a contractor shall
pay to the subcontractor or material supplier, and each subcontractor shall in turn
pay to its subcontractors or material suppliers, the full or proportional amount received
for each subcontractor's work and materials based on work completed or service provided
under the subcontract, 7 days after receipt of each progress or final payment or 7
days after receipt of the subcontractor's or material supplier's invoice, whichever
is later.


[
1993, c. 461, §1 (NEW)
.]








4. Delayed payments. 
Notwithstanding any contrary agreement, if any progress or final payment to a subcontractor
or material supplier is delayed beyond the due date established in subsection 2 or
3, the contractor or subcontractor shall pay its subcontractor or material supplier
interest on any unpaid balance due beginning on the next day, at an interest rate
equal to that specified in Title 14, section 1602-C.


[
2003, c. 460, §2 (AMD)
.]





SECTION HISTORY

1993, c. 461, §1 (NEW).
2001, c. 471, §A13 (AMD).
2003, c. 460, §2 (AMD).