House Bill No. by Representative Jacob Landry amends R.S. 9:2784 to establish a framework for prompt payment to contractors, subcontractors, and suppliers involved in construction projects. The bill mandates that owners must pay contractors within thirty-five days of receiving a written payment request, unless there is a lawful reason to withhold payment. 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 outlines the responsibilities of contractors to promptly pay subcontractors and suppliers within seven days of receiving payment from the owner, including any accrued interest.

Additionally, the bill introduces penalties for late payments, stipulating that unpaid amounts will incur a penalty of one and one-half percent per month. It clarifies that a good faith dispute must be resolved by paying the undisputed amount by the required date. The legislation also allows for legal action to collect payments and penalties, with the prevailing party entitled to court costs and reasonable attorney fees. Certain exemptions are included, such as agreements related to oil and gas services, ensuring that the provisions do not conflict with existing prompt payment obligations for public contracts.

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