Oklahoma § 15-820 - Frequency and time period of payments to prime contractor

§ 15-820. Frequency and time period of payments to prime contractor

- Exemption - Suspension and resumption of work.

A. Bid Projects.

1. On all private construction projects in which a set of plans

or specifications or both plans and specifications are issued for

bid, the owner shall specify in writing the frequency and time

period for payments to the prime contractor. The general

specifications and the first page of all bid plans shall include the

following, or substantially similar, language:

OWNER SHALL ISSUE PAYMENTS WITH A FREQUENCY OF __________.

OWNER SHALL ISSUE EACH PAYMENT TO THE PRIME CONTRACTOR WITHIN

________ DAYS AFTER RECEIPT OF CONTRACTOR’S BILLING.

Any resulting contract shall include the payment frequency and time

period prescribed in the general specifications and bid plans. An

architect, engineer, or other entity preparing the plans and

specifications for the owner shall not be liable for the failure to

include the payment terms on a set of plans or specifications used

for bidding purposes.

2. If the owner fails to comply with the provisions of

paragraph 1 of this subsection, the following shall be applicable:

a.

the owner shall make monthly progress payments, and

b.

payments shall be due within twenty-eight (28)

calendar days after receipt of billing.

3. The owner may reduce the progress payment as provided for in

the contract.

Oklahoma Statutes - Title 15. Contracts

4. Subcontractors shall be paid by the prime contractor within

ten (10) calendar days of payment from the owner, or as otherwise

agreed to by the parties. Payment may be reduced as provided for in

the subcontract.

B. Private Negotiated Projects.

1. The provisions of subsection A of this section shall not be

applicable to private negotiated projects.

2. An owner may choose to negotiate a construction contract

with a contractor, and may also choose to keep the payment terms of

that contract private.

3. If a contractor invites a subcontractor to bid on any

portion of a negotiated project, the contractor shall clearly define

the contractor’s payment term upon issuance of the invitation to

bid. Such payment term shall be defined as to the frequency that

payments shall be made, and a specific day of the month that the

subcontractor shall expect to receive each payment.

4. Any subcontract negotiated pursuant to this subsection shall

include the same payment terms as were represented by the prime

contractor to the subcontractor prior to the acceptance of the bid

of the subcontractor. Payment may be reduced as provided for in the

subcontract.

C. Suspension of Work for Bid Projects and Private Negotiated

Projects.

1. The prime contractor may suspend work:

a.

when payment has not been received within ten (10)

calendar days of the date payment should have been

received,

b.

if the prime contractor has complied with the

contract, and

c.

if the prime contractor has given the owner ten (10)

calendar days written notice of work suspension

delivered by certified mail or other verifiable

service.

2. Subcontractors may suspend work:

a.

when payment has not been received within ten (10)

calendar days of the date payment should have been

received,

b.

if the subcontractor has complied with the

subcontract, and

c.

if the subcontractor has given the prime contractor

ten (10) calendar days written notice of work

suspension delivered by certified mail or other

verifiable service.

D. Resumption of Work.

No prime contractor or subcontractor shall be required to resume

work until:

Oklahoma Statutes - Title 15. Contracts

1. Receipt of full payment of undisputed portions of

outstanding billing;

2. The contracted work schedule is extended the number of days

of delay; and

3. A change order is issued for the verifiable direct cost of

suspension, delay and start-up.

Added by Laws 2010, c. 208, § 1, emerg. eff. May 5, 2010.