This bill aims to enhance payment transparency in public contracts by amending existing Minnesota statutes related to retainage and payment notifications. It introduces a new provision that states any contract, management system, or procedure that restricts, delays, or prohibits a party from submitting an invoice is contrary to public policy and is void and unenforceable. Additionally, it mandates that public contracting agencies must notify contractors and subcontractors of all payments made, including progress, retainage, and final payments, within three business days. The notification must detail the payment amount, date, recipient, and reasons for any withholding of payment.

Furthermore, the bill specifies that retainage on public contracts cannot exceed five percent and must be released within 60 days after substantial completion. Contractors are required to pay remaining retainage to subcontractors within ten days of receiving payment, unless there is a dispute regarding the work. The bill also prohibits withholding retainage for warranty work and clarifies that no payment is required for incomplete contract portions or unsubmitted invoices. Overall, these amendments aim to ensure timely payments and improve communication between contracting agencies and contractors/subcontractors.

Statutes affected:
Introduction: 15.72, 337.10