HB638

Louisiana HB638 mandates prompt payments to contractors and subcontractors for construction work, with penalties for late payments.

Louisiana HB638 establishes requirements for prompt payments to contractors and subcontractors in construction projects. It mandates that owners or their representatives must pay contractors within 35 days of a written request, with a daily penalty of 1.5% for late payments. Contractors must then pay subcontractors and suppliers within seven days of receiving payment from the owner, also incurring a daily penalty of 1.5% for late payments. The law allows for withholding payments if a good faith dispute exists, requiring the non-disputed amount to be paid promptly.