Prompt Payment Penalties Overview
By Bruce D. Rudman, Abdulaziz, Grossbart
There have been a few cases in the past few years that affect the Prompt Pay Laws. The cases really do not support the application of prompt pay penalties except where there is absolutely no dispute over the unpaid amount due or the work. We often hear of contractors claiming they are entitled to 24% on unpaid balances because of these laws and usually their position is contrary to the law. Thus, we thought it was important to give an overview of where these laws are today.
