§444-25 Payment for goods and services. A contractor shall pay the contractor's subcontractor for any goods and services rendered within ten days after receipt of an invoice by the subcontractor that includes any supporting documents as required by the terms of the subcontract and after receipt by the contractor of payment from the owner for the subcontractor's work, whichever occurs later. The subcontractor shall be entitled to receive interest on the unpaid amount at the rate of one and one-half per cent per month from the date payment is due; provided that this section shall not apply if the delay in payment is due to a bona fide dispute between the contractor and the subcontractor concerning the goods and services contracted for.
If payment is contingent upon receipt of funds held in escrow or trust, the contractor shall clearly state this fact in the contractor's solicitation of bids. If the solicitation for bids contains the statement that the time of payment is contingent upon the receipt of funds held in escrow or trust and a contract is awarded in response to the solicitation, interest shall not begin to accrue upon any unpaid balance until after the tenth day following receipt by the contractor of an invoice by the subcontractor that includes any supporting documents as required by the terms of the subcontract and receipt of the escrow or trust funds, whichever occurs later; provided that this section shall not apply if the delay in payment is due to a bona fide dispute between the subcontractor and the contractor concerning the goods and services contracted for.
This section shall not apply to chapter 103 or any section affecting public contracts. [L 1969, c 147, §2; am L 1971, c 92, §1; gen ch 1985; am L 2012, c 260, §2]
Note
L 2012, c 260, §3 provides:
"This Act [amending §444-25] shall not apply to the payment terms of previously binding written private contracts entered into, construction bids opened, or request for proposals solicited prior to July 1, 2012."