Oklahoma § 61-225 - Suspension or termination of construction contract Payment

§ 61-225. Suspension or termination of construction contract Payment

A. Any prime contractor that performs work under a construction

contract may suspend performance of the work or may terminate a

construction contract if the prime contractor is not properly paid

within forty-nine (49) calendar days of the date that the

corresponding proper invoice is submitted. Written notice must be

received by the owner at least seven (7) calendar days before any

such intended suspension or termination.

B. A prime contractor or any entity that suspends performance

due to the suspension of a prime contractor, is not required to

Oklahoma Statutes - Title 61. Public Buildings and Public Works

furnish further performance until such entity is paid for the full

amount, less retainage, of work performed, material supplied, or

services rendered, together with any costs incurred for

demobilization, mobilization and other costs attributable to delay

of the work resulting from the shutdown and start-up of a project.

C. Any entity that suspends performance of the work or

terminates a construction contract for nonpayment under this act

shall not be held in breach of the construction contract.

D. If the owner delays in making payments to the prime

contractor, any agreed-upon schedule or completion date and their

resulting penalties, damages, bonuses, or rewards shall be extended

by the same amount of calendar days that payments were late.

E. If a payment to a prime contractor is received later than as

specified in this act, that prime contractor shall be entitled to

receive interest pursuant to Section 41.4b of Title 62 of the

Oklahoma Statutes. If the prime contractor has already paid a

subcontractor, then no interest is due and owing to the

subcontractor. If interest is paid to a prime contractor as

provided herein, then any subsequent timely payment made to a

subcontractor shall bear interest at the same rate paid to the prime

contractor. If a prime contractor fails to timely pay a

subcontractor, such payment to a subcontractor shall bear interest

at the rate of one and one-half percent (1 1/2%) per month.

Added by Laws 2004, c. 256, § 5, eff. Nov. 1, 2004. Amended by Laws

2004, c. 425, § 4, eff. July 1, 2004; Laws 2005, c. 92, § 3, eff.

Nov. 1, 2005. Renumbered from Title 15, § 625 by Laws 2005, c. 92,

§ 6, eff. Nov. 1, 2005.