Lawmakers weigh prompt-payment bill for construction subcontractors amid disputes over enforcement and penalties

Delegate Mary Lehman told the House Economic Matters Committee that House Bill 451 would require owners to pay prime contractors and prime contractors to pay subcontractors within a set time after an invoice — and create a financial penalty for late payments.

"What this bill does is ensure that everyone involved on state and private construction contracts gets paid on time, primes and subcontractors," Delegate Mary Lehman said when she introduced the measure. Lehman told the committee she would offer sponsor amendments: shortening the payment window from 60 days to 45 days and making contrary contract provisions unenforceable.

The bill would create a remedy for unpaid invoices starting after the prompt-payment deadline; the sponsor described a 9% per‑year penalty on unpaid balances beginning on the 60th day after receipt of an invoice (she later proposed 45 days in amendment language). Lehman cited Virginia and North Carolina as nearby states with prompt‑payment laws; witnesses noted both states use roughly 1% per month as a penalty.

Suppor…