Bill > HB288

This bill amends Ohio Revised Code section 4113.61 to establish more stringent payment requirements for private construction project owners, contractors, subcontractors, and material suppliers. The bill requires private project owners to pay contractors within 30 days of receiving a payment request, with specific provisions for different types of construction work, and imposes an 18% annual interest penalty for late payments. The legislation mandates that contractors must similarly pay subcontractors and material suppliers within 10 days of receiving payment from the project owner, with the same interest penalty for delays. The bill also allows parties who are not paid in a timely manner to file civil lawsuits to recover the amount due plus interest, and in most cases, the court will award reasonable attorney fees to the prevailing party. Importantly, the bill specifies that these payment terms cannot be waived by contract and applies to most construction projects, with explicit exemptions for single-, two-, or three-family detached dwelling houses and certain oil, gas, and mineral exploration agreements. The new law will take effect six months after its passage, giving parties time to adjust to the new payment requirements.

Business and Industry

https://www.legislature.ohio.gov/legislation/136/hb288