Construction Litigation Alert: Massachusetts Enacts "Prompt Payment" Legislation for Private Construction Contracts


On August 10, 2010, Governor Deval Patrick signed into law “An Act Promoting Fairness in Private Construction Contracts.” See M.G.L. ch. 149, § 29E. This law is an important new regulation affecting payment terms on private construction projects. The law applies to owners, contractors, subcontractors, and lower tier subcontractors, and requires owners to pay contractors promptly and contractors, in turn, to pay subcontractors and suppliers promptly. In general, the new law requires contractors and subcontractors to submit applications for payment within thirty days of the end of the first calendar month occurring at least fourteen days after commencing work. Within fifteen days of the submission of the application for payment, the owner must approve or reject the application.1 Payment must be made within forty-five days of approval of the payment application. The new law also sets timetables on the processing of proposed change orders, and requires approval or rejection within thirty days of the change order request or commencement of work, whichever is later.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mintz Levin | Attorney Advertising

Written by:


Mintz Levin on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.