Prompt Pay Act

The Prompt Pay Act governs the timing of payments on construction projects, covering both what an owner owes the prime contractor and what the prime contractor and those below it owe the remote contractors, suppliers, and design professionals further down the chain. It ties payment to applications for completed work and an agreed payment schedule, restricts when payment or retainage may be withheld, requires certain retained or intended payments to be held in escrow or in trust for those entitled to them, and makes overdue amounts accrue interest. An unpaid contractor may give notice of intent to seek relief and pursue remedies that can include attorney's fees and recourse against a bond, and may demand reasonable assurance of payment; these protections generally cannot be waived by agreement, though the act's coverage does not extend to every contract.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.