Bill > H3523

This bill aims to improve the payment process for subcontractors working on public projects in the Commonwealth by establishing clearer timelines and enforcement mechanisms. It mandates that the state purchasing agent oversee payments from general contractors to subcontractors, ensuring they adhere to the payment schedules outlined in existing law, and will maintain a toll-free number staffed by investigators to help subcontractors confirm they are being paid correctly. The bill also requires general contractors to use subcontractors whose prices were acknowledged in a letter of intent or similar writing, and the State Division of Oversight (SDO) will work with the state purchasing agent to enforce this, with potential administrative penalties for non-compliance. Furthermore, it significantly amends the payment terms for subcontractors, requiring general contractors to pay them within 7 days of receiving payment themselves for labor, services, or materials, with late payments incurring daily compounded interest at the prime rate plus 3 percentage points, and the Commonwealth may impose additional penalties. The bill also clarifies that contracts cannot prohibit late payment interest charges and provides subcontractors with specific legal procedures and remedies, including the ability to file a complaint and seek court intervention like injunctions or attachments, if undisputed payments are not made within 30 days, with the prevailing party in such disputes being awarded court costs and attorney's fees.