Bill > H3378

This bill aims to improve the payment process for subcontractors working on public construction projects in the Commonwealth. It does this in several key ways: 1. It requires the state purchasing agent to oversee the payment of subcontractors by general contractors and to create a hotline for subcontractors to report non-payment issues. 2. It prohibits general contractors from using subcontractor prices from minority-certified subcontractors in a bid and then not using those subcontractors. The Supplier Diversity Office (SDO) and state purchasing agent can impose penalties for non-compliance. 3. It requires general contractors to pay subcontractors within 7 days of receiving payment from the government. Any late payments will accrue interest at the prime rate plus 3 percentage points. It also provides subcontractors with new legal remedies, including the ability to seek a temporary injunction and prejudgment attachment, if they are not paid within 30 days. The court must also award attorney's fees to the prevailing party in such disputes. 4. It allows subcontractors with a written agreement to apply for direct payment from the government entity, rather than having to go through the general contractor. The overall goal is to help ensure subcontractors working on public construction projects in Massachusetts are paid in a timely manner.

Government Affairs

https://malegislature.gov/Bills/190/H3378