The bill amends section 4113.61 of the Revised Code to enforce stricter payment timelines for contractors engaged in private construction projects. It requires private owners to pay contractors within specified timeframes after receiving a written request for payment, with payments for work needing municipal or county approval due within thirty days of certification, and all other payments due within thirty days of the request. If a private owner fails to meet these deadlines, they must pay interest at a rate of eighteen percent per annum on the overdue amount. The bill also establishes payment obligations for contractors to ensure timely payments to subcontractors and material suppliers after receiving payment from the owner, while introducing provisions for retainage and penalties for late payments.

Additionally, the bill introduces new definitions related to construction and contracting, including terms such as "contractor," "lower tier subcontractor," and "owner," which encompasses both private and public entities. It clarifies the term "wages due" to refer to wages owed to laborers at the time a contractor or subcontractor receives payment. The bill repeals the existing section 4113.61, indicating a significant overhaul of the legal framework governing construction contracts and labor relations. The new definitions and provisions will take effect six months after the bill's effective date, allowing stakeholders in the construction industry time to adjust to the updated legal requirements.

Statutes affected:
As Introduced: 4113.61
As Reported By House Committee: 4113.61