Prompt Payment Legislation - Electrical Contractors Association of ...

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Jurisdictional Overview• West Virginia• Indiana• South Dakota• Iowa• Oklahoma• Michigan• New Hampshire• Virginia• Washington• More states are anticipated to adoptprompt pay statutes for private projectsin coming years.• States have used the Federal PromptPayment Act as a template for theirown legislation.• As such, requirements and deadlinesin these various acts differ from stateto state.• States’ acts however, all follow commonmain themes:1. General contractors are entitled topayment within a certain number ofBucket Trucks, Digger Derricks,Stringing Gear, and more...days after the application for paymentis submitted. (The number of daysfor payment ranges from five to 30,depending on the state. Most commonis payment between 15 and 30 days afterreceipt of invoice. In virtually all cases,the time period stipulates so much timefor approval with the balance of time forpayment.)2. If project owners dispute all or part ofa payment application, they must objectin writing, quantify the amount disputedand pay the undisputed amountto the general contractor.3. The general contractor must payits first-tier subcontractors withina certain number of days of receiptof payment from the owner. Thistime period is typically shorter thanthat stipulated for the owner to paythe general contractor. If the generalcontractor disputes a subcontractor’spayment application, it must object inwriting, quantify the amount disputedand pay the undisputed amount tothe subcontractor.4. In the event that the owner orgeneral contractor does not objectto a payment application in a timelyfashion, the application is deemedadmitted and failure to timely pay isa breach of contract by the owner orgeneral contractor.EVERYTHING YOU NEEDTO GET THE JOB DONE• Equipment Locations Throughout Canada• Nationwide Service and Repair Network• High Selection of Late Model Units• Immediate Equipment Availability• Flexible Rent or Rent to Purchase OptionsEastern Canada1-866-816-8941Western Canada1-877-513-6848View Our Full Inventory Onlinewww.nescosales.comSDP 4100Commercial Equipment Corp. is an authorized distributor for Nesco, LLC.5. Some states have expanded their promptpayment acts to also address changeorder requests. In such cases, an owner’sfailure to timely respond to a contractor’sproperly submitted request for a changeorder results in the change order beingincorporated into the contract.6. Usually, these prompt payment actsprovide that their statutory termsare implied to be incorporated intocontracts entered into in that particularjurisdiction, and cannot be changed bythe parties unless allowed by the act.David Zurawel is vice-president of policy andgovernment relations at the Council of OntarioConstruction Associations and can be reachedat dzurawel@coca.on.ca.Ontario Electrical Contractor12
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