North Carolina H383 strengthens protections for subcontractors by requiring timely payments and interest on late payments.

North Carolina H383 modifies Chapter 22C to enhance protections for subcontractors. It mandates that contractors and subcontractors must pay subcontractors within seven days of receiving payment. If payments are delayed beyond seven days, interest accrues at a rate of one percent per month. The law also voids any contractual provisions that postpone payment for more than 30 days. This act applies to contracts entered into after its effective date and does not cover residential contractors or improvements to residential properties with 12 or fewer units.

North Carolina H383 strengthens protections for subcontractors by requiring timely payments and interest on late payments.

North Carolina H383 modifies Chapter 22C to enhance protections for subcontractors. It mandates that contractors and subcontractors must pay subcontractors within seven days of receiving payment. If payments are delayed beyond seven days, interest accrues at a rate of one percent per month. The law also voids any contractual provisions that postpone payment for more than 30 days. This act applies to contracts entered into after its effective date and does not cover residential contractors or improvements to residential properties with 12 or fewer units.