Starting July 1, 2007: New Procedures to enable prompt payment to general contractors, subcontractors, and material suppliers
Act 291, SLH 2006, the Prompt Payment Act, went into effect July 1 , 2007 for contracts that are executed on or after July 1, 2007. The act enables prompt payment for government work of general contractors, subcontractors, and material suppliers. It achieves a reasonable balance between incentive for prompt payment and protecting the interests of general contractors, subcontractors, material suppliers, and government agencies. All government agencies are responsible for implementation. The information and forms to comply with the new procedures are available by clicking on the links below.
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