Bill > B26-0254

This bill amends the Private Contractor and Subcontractor Prompt Payment Act of 2013 to provide stronger protections for contractors and subcontractors in the District of Columbia regarding payment and work suspension. The bill introduces new definitions for "billing period" and "deficiency item" and establishes clear procedures for contractors and subcontractors to stop work when not paid on time. Specifically, contractors can suspend work after providing written notice if payment is at least 15 days overdue, and they must give 10 calendar days' notice of intent to suspend work. Similarly, subcontractors can suspend work if payment is at least 30 days overdue. The bill prohibits contract provisions that prevent contractors or subcontractors from stopping work due to non-payment, deeming such clauses void and unenforceable. Additionally, the bill requires owners, contractors, and subcontractors to provide written explanations within specific timeframes when withholding payment for deficiency items or when an invoice contains errors. If proper notice is not given, the payer may be required to pay the full invoice. The goal of the bill is to ensure fair and timely payment practices in construction contracts and protect the rights of contractors and subcontractors.

Business and Industry

https://lims.dccouncil.gov/Legislation/B26-0254