Bill > HB1089

This bill establishes comprehensive rules governing construction contracts in Missouri, defining key terms and setting clear guidelines for payment and contract interactions between owners, contractors, subcontractors, and suppliers. The bill prohibits several contract provisions deemed against public policy, such as withholding payments beyond disputed amounts, preventing contract suspension for non-payment, requiring work without agreed compensation, or mandating waiver of legal rights as a condition of payment. It requires owners to pay contractors within 40 days of receiving a satisfactory invoice, and mandates that contractors pay subcontractors within 7 days of receiving payment from the owner. The bill requires detailed written notices when payments are to be withheld, specifying exact reasons and apportioning responsibility. These provisions ensure transparency, fairness, and prompt payment throughout the construction contract chain, applying to all tiers of contractors and suppliers. Importantly, the bill does not apply to small residential renovation projects where the owner occupies or will occupy the property, and these rules will only take effect for contracts entered into after August 28, 2025.

https://house.mo.gov/Bill.aspx?bill=HB1089&year=2025&code=R