Is Prompt Payment a Requirement? A Mistake Can Cost You.
There is a little known but powerful tool for subcontractors and suppliers. It allows them to seek immediate payment on undisputed contract obligations due on public projects from contractors who have already been paid.
Prompt Payment on Public Jobs.
Prompt Payment on Private Jobs.
And it isn’t just on public jobs that subcontractors have this level of protection. Other Florida statutes provide similar guidelines for contractors performing private work. Florida Statute §713.346 states in pertinent part:
Any person who receives payment for constructing or altering permanent improvements to real property shall pay, in accordance with the contract terms, the undisputed contract obligations for labor, services or materials provided on account of such improvements.
Ever mindful of the uneven bargaining position in which most subcontractors and suppliers find themselves, the legislature sought to level the playing field.
Follow the payment dollars; some of them may be yours.