Massachusetts Prompt Pay Act
Saturday, August 20, 2011 at 9:43PM
Jack DiNicola

On August 10, 2010, Governor Patrick signed into law M.G.L. c. 149 section 29E, called the Massachusetts Prompt Pay Act. This Act significantly changes payment terms on private construction contracts and sets forth requirements to enforce the soon to be limited effect of pay-if-paid clauses. Here are the highlights:

Without question, the Act will change how contractors, owner, and subcontractors approach contract negotiation, the payment process, and change order process. For general contractors, it is not only important to understand the new rules applicable to the various contracts executed for any given contract, but it is also important to strictly follow the Act’s requirements in order to assert the now limited pay-if-paid provisions – Notices of Contract must be recorded immediately upon contract execution and in no event later than the submission of the first application for payment.

If you have any questions, please do not hesitate to contact Jack DiNicola at (617) 279-2593 or Jack.DiNicola@dsu-law.com.

 

Article originally appeared on DiNicola Seligson & Upton (http://dsu-law.com/).
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