House Bill No. by Representative Jacob Landry amends R.S. 9:2784 to establish new procedures and penalties regarding prompt payments to contractors, subcontractors, and suppliers in Louisiana. The bill mandates that owners must pay contractors within thirty-five days of receiving a written payment request for properly performed work or materials. If payment is not made within this timeframe and there is no good faith dispute, the owner is subject to penalties in addition to any other legal remedies. The bill also specifies that contractors must promptly pay subcontractors and suppliers within seven days of receiving payment from the owner, including any accrued interest.

Additionally, the bill introduces provisions for penalties on unpaid amounts, which will accrue at a rate of one and one-half percent per month, starting the day after the payment is due. It allows for actions to collect payments and penalties owed, with the court awarding reasonable attorney fees to the prevailing party. The bill clarifies that it does not apply to certain agreements related to oil, gas, and mineral services, and it ensures that the prompt payment obligations for contracts with public entities remain intact. Overall, the legislation aims to enhance the financial accountability and timeliness of payments within the construction industry.

Statutes affected:
HB638 Original: 9:2784(A)
HB638 Engrossed: 9:2784(A)
HB638 Reengrossed:
HB638 Enrolled:
HB638 Act 822: