Bill > SF1714

This bill enhances payment transparency and fairness for contractors and subcontractors in public improvement projects by modifying existing state statutes. The bill requires public contracting agencies to provide detailed notifications to contractors and subcontractors within three business days of making any payment, including the payment amount, date, recipient information, and either a description of the work completed or a copy of the related payment application. It maintains existing provisions about retainage (money withheld from payments as a form of financial protection), limiting retainage to a maximum of 5% and requiring its release within 60 days after substantial completion. The bill also explicitly states that any contract, management system, or procedure that restricts or delays invoice submission is contrary to public policy and therefore unenforceable. Additionally, the bill mandates that contractors must pay subcontractors within ten days of receiving payment, with specific provisions for handling payment disputes. The overall aim is to increase financial transparency, ensure timely payments, and protect the interests of contractors and subcontractors working on public improvement projects.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1714&ssn=0&y=2025