Massachussetts Prompt Payment Act

In November 2010, Massachusetts enacted the most significant legislation to the private construction industry since the 1996 revisions to the Mechanic’s Lien Act.  The Act will require revision of form contracts as well as modifications in standard payment practices. Specifically, the Act imposes certain deadlines and procedures on applications for progress payments, approval/rejection of payment applications, and payment itself. It also imposes similar procedures and deadlines for change orders. Perhaps most significantly, the Act largely invalidates so called “pay-if-paid” clauses. Finally, the Act mandates that construction contracts can no longer require a contractor or subcontractor to continue performing if an approved payment has been outstanding for more than 30 days, unless there is an uncured default or a dispute over construction quality or quantity. DE-pmass pymnt cutsheet-12.9.10

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