Co-Sponsorship Memo Details

I am preparing to introduce legislation that will amend the Contractor and Subcontractor Payment Act (Act 7 of 1994).  The Contractor and Subcontractor Payment Act was originally passed to provide a means for contractors/subcontractors involved in construction work to resolve contract disputes.  The problem is that these disputes are still happening.  In fact, it has led to more contractors/subcontractors leaning more toward filing mechanic’s liens to resolve payment disputes. We need to reduce reliance on the Mechanic’s Lien Law.
 
With that said, I plan on introducing legislation that would allow for suspension of work if payment is not received by a contractor or a subcontractor in accordance with the terms of their construction contract.  Specifically, if the contractor/subcontractor is not paid under the contract terms, the following would apply before suspension of work could occur:

 

1. The contractor/subcontractor has given 7 days notice of their intent to suspend work; and
2. At least 60 days have passed since the end of the billing period of which payment has not been received.
    

I believe these provisions will assist contractors and subcontractors in receiving payment for work they have completed.  I hope that you will join me by cosponsoring this legislation.