§ 4001. Definitions As used in this chapter: (1) “Contractor” means a person or entity that contracts with an owner to perform work, or provide materials or machinery necessary to perform work on real property. (2) “Work” means to build, alter, repair, or demolish any improvement on, connected with, or on or beneath the surface […]
§ 4002. Owner’s payment obligations (a) The owner shall pay the contractor strictly in accordance with the terms of the construction contract. (b) In the event that the construction contract does not contain a term governing the terms of payment, the contractor shall be entitled to invoice the owner for progress payments at the end […]
§ 4003. Contractor’s and subcontractor’s payment obligations (a) Performance by a subcontractor in accordance with the provisions of its contract shall entitle it to payment from the party with which it contracts. (b) Notwithstanding any contrary agreement, a contractor or subcontractor shall disclose to a subcontractor, before a subcontract is entered, the due date for […]
§ 4004. Errors in documentation If an invoice is filled out incorrectly, or incompletely, or if there is any defect or impropriety in an invoice submitted, the receiving owner, contractor, or subcontractor shall contact the invoicing contractor or subcontractor in writing within ten working days of receiving the invoice. Otherwise, documentary errors shall be deemed […]
§ 4005. Retainage (a) If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work. (b) If an owner […]
§ 4005a. Fund held in trust; commingling; no effect on title to real property (a) As used in this section: (1) “Claim” means any valid claim for materials furnished or services rendered in the construction, repair, remodeling, improvement, or renovation of any building or structure for which the claimant has a lien or the right […]
§ 4006. Prepayment; advance payment This chapter shall in no way be construed to prohibit an owner, contractor, or subcontractor from making advance payments, progress payments, or from prepaying if agreements or other circumstances make such payments appropriate. All such payments shall be made promptly and shall be subject to the interest, penalties, and other […]
§ 4007. Disputes; penalties; attorney’s fees (a) Nothing in this chapter shall prevent an owner, contractor, or subcontractor from withholding payment in whole or in part under a construction contract in an amount equalling the value of any good faith claims against an invoicing contractor or subcontractor, including claims arising from unsatisfactory job progress, defective […]
§ 4008. Contracts involving federal aid Notwithstanding any provision of this chapter, language varying the requirements of this chapter may be included in contracts when such variance is required by any statute, regulation, or grant agreement conditioning the receipt or expenditure of federal aid. (Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)
§ 4009. Owner exclusion This chapter shall not apply to contracts for the purchase of materials by a natural person performing work on his or her own real property. (Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)
