Vermont § 4003 - Contractor’s and subcontractor’s payment obligations

§ 4003. Contractor’s and subcontractor’s payment obligations

• (a) Performance by a subcontractor in accordance with the provisions of its contract shall
  entitle it to payment from the party with which it contracts. (b) Notwithstanding any contrary agreement, a contractor or subcontractor shall disclose
  to a subcontractor, before a subcontract is entered, the due date for receipt of payments
  from the owner. Notwithstanding any other provision of this chapter, if a contractor
  or subcontractor fails to accurately disclose the due date to a subcontractor, the
  contractor or subcontractor shall be obligated to pay the subcontractor as though
  the 20-day due dates in subsection 4002(c) of this title were met by the owner. (c) Notwithstanding any contrary agreement, when a subcontractor has performed in accordance
  with the provisions of its contract, a contractor shall pay to the subcontractor,
  and each subcontractor shall in turn pay to its subcontractors, the full or proportional
  amount received for each such subcontractor’s work and materials based on work completed
  or service provided under the subcontract, seven days after receipt of each progress
  or final payment or seven days after receipt of the subcontractor’s invoice, whichever
  is later. (d) Notwithstanding any contrary agreement, if any progress or final payment to a subcontractor
  is delayed beyond the due date established in subsections (b) or (c) of this section,
  the contractor or subcontractor shall pay its subcontractor interest, beginning on
  the next day, at an interest rate equal to that established by 12 V.S.A. § 2903(b), on such unpaid balance as may be due. (Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)