Maine Revised Statutes Title 10 Sec. 1114 – Contractor’s and subcontractor’s payment obligations
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Payment to a subcontractor for work is subject to the following conditions. [PL 1993, c. 461, §1 (NEW).]
1. Contractual agreements. The contractor or subcontractor shall pay a subcontractor or material supplier strictly in accordance with the terms of the subcontractor’s or material supplier’s contract.
[PL 1993, c. 461, §1 (NEW).]
Terms Used In Maine Revised Statutes Title 10 Sec. 1114
- Contract: A legal written agreement that becomes binding when signed.
- Contractor: means a person or entity that contracts with an owner to perform work on real property. See Maine Revised Statutes Title 10 Sec. 1111
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Material supplier: means any person or entity that has furnished or contracted to furnish materials or supplies in connection with a construction contract. See Maine Revised Statutes Title 10 Sec. 1111
- Owner: includes successors in interest of the owner and agents of the owner acting within their authority. See Maine Revised Statutes Title 10 Sec. 1111
- Subcontractor: means any person or entity that has contracted to perform work for or provide services to a contractor or another subcontractor in connection with a construction contract. See Maine Revised Statutes Title 10 Sec. 1111
- Work: means to build, alter, repair or demolish any improvement on, connected with or beneath the surface of any real property, or to excavate, clear, grade, fill or landscape any real property, to construct driveways, private roadways, highways and bridges, drilled wells, septic systems, sewage systems or utilities, to furnish materials for any of those purposes or to perform labor upon real property. See Maine Revised Statutes Title 10 Sec. 1111
2. Disclosure. Notwithstanding any contrary agreement, a contractor or subcontractor shall disclose to a subcontractor or material supplier the due date for receipt of payments from the owner before a contract between those parties is entered. Notwithstanding any other provision of this chapter, if a contractor or subcontractor fails to accurately disclose the due date to a subcontractor or material supplier, the contractor or subcontractor is obligated to pay the subcontractor or material supplier as though the 20-day due dates in section 1113, subsection 3 were met.
[PL 2001, c. 471, Pt. A, §13 (AMD).]
3. Invoices. Notwithstanding any contrary agreement, when a subcontractor or material supplier has performed in accordance with the provisions of a contract, a contractor shall pay to the subcontractor or material supplier, and each subcontractor shall in turn pay to its subcontractors or material suppliers, the full or proportional amount received for each subcontractor’s work and materials based on work completed or service provided under the subcontract, 7 days after receipt of each progress or final payment or 7 days after receipt of the subcontractor’s or material supplier’s invoice, whichever is later.
[PL 1993, c. 461, §1 (NEW).]
4. Delayed payments. Notwithstanding any contrary agreement, if any progress or final payment to a subcontractor or material supplier is delayed beyond the due date established in subsection 2 or 3, the contractor or subcontractor shall pay its subcontractor or material supplier interest on any unpaid balance due beginning on the next day, at an interest rate equal to that specified in Title 14, section 1602?C.
[PL 2003, c. 460, §2 (AMD).]
SECTION HISTORY
PL 1993, c. 461, §1 (NEW). PL 2001, c. 471, §A13 (AMD). PL 2003, c. 460, §2 (AMD).