White Paper

12 Pages
  • 12 Pages

Prompt Payment and Subcontractors


There are several statutes requiring prompt payment to contractors on both private and public works.

Subcontractors and suppliers often supply materials and labor to construction projects with the risk they will not be paid for their efforts. These parties typically have contracts with the general contractor (or a major subcontractor) and often face obstacles to payment. General contractors may refuse to pay until they are paid by the owner, may go bankrupt during the work, or may withhold payment because of disputes over work performed by the subcontractor. This white paper reviews the theory of recovery, subcontractor substitutions, the stop notice process, and much more.



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