Construction Contract Payments: Internet Website Posting
By Andy Choi, Manager, Assurance Services
California Gov. Jerry Brown signed AB 1223, “Construction Contract Payments: Internet Website Posting,” on October 8, 2017.
The new law requires, within 10 days of making a construction contract payment, a state or local agency to post the following information on its website:
- The project for which the payment was made.
- The name of the construction contractor or company paid.
- The date the payment was made or the date the state agency transmitted instructions to the Controller or other payer to make the payment.
- The payment application number or other identifying information.
- The amount of the payment.
The new law exempts from these provisions construction contracts valued less than $25,000 and specified progress payments published in the California State Contracts Register under existing law.
This law will enable subcontractors to verify that public project owners have paid their general contractors and will allow subcontractors to enforce their right to be paid timely. The existing law generally requires a general contractor to pay any subcontractor within seven days of receipt of a progress payment. Therefore, it will also help subcontractors ascertain when general contractors have been paid and provide public notice that they can refer to when requesting payment within seven days as required under the existing law.