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The Vermont Statutes Online



Title

09

:
Commerce and Trade






Chapter

102

:
CONSTRUCTION CONTRACTS











 

§

4003. Contractor's and subcontractor's payment obligations

(a) Performance

by a subcontractor in accordance with the provisions of its contract shall

entitle it to payment from the party with which it contracts.

(b)

Notwithstanding any contrary agreement, a contractor or subcontractor shall

disclose to a subcontractor, before a subcontract is entered, the due date for

receipt of payments from the owner. Notwithstanding any other provision of this

chapter, if a contractor or subcontractor fails to accurately disclose the due

date to a subcontractor, the contractor or subcontractor shall be obligated to

pay the subcontractor as though the 20-day due dates in subsection 4002(c) of

this title were met by the owner.

(c)

Notwithstanding any contrary agreement, when a subcontractor has performed in

accordance with the provisions of its contract, a contractor shall pay to the

subcontractor, and each subcontractor shall in turn pay to its subcontractors,

the full or proportional amount received for each such subcontractor's work and

materials based on work completed or service provided under the subcontract,

seven days after receipt of each progress or final payment or seven days after

receipt of the subcontractor's invoice, whichever is later.

(d) Notwithstanding

any contrary agreement, if any progress or final payment to a subcontractor is

delayed beyond the due date established in subsections (b) or (c) of this

section, the contractor or subcontractor shall pay its subcontractor interest,

beginning on the next day, at an interest rate equal to that established by 12

V.S.A. § 2903(b), on such unpaid balance as may be due. (Added 1991, No. 74, §

1, eff. Jan. 1, 1992.)