Panel backs transparency measures for public construction payments; bill HF1234 laid over for revision

Representative Kelly Scott introduced House File 1234 on March 13, a bill aimed at increasing payment transparency for subcontractors on public construction projects, and the committee laid the measure over for further work with stakeholders.

Representative Kelly Scott (state representative) described the bill as intended "to provide predictability and fairness in the payment process," saying it would require public owners to notify subcontractors when payments are made to the general contractor or prime and would bar contract provisions that prevent subcontractors from invoicing electronically.

Contractors and legal experts said they support the bill. John Lloyd, vice president of Lloyd's Construction Services in Chaska, described a recent project for the Metropolitan Council in which his company submitted 276 pages of contract documentation for roughly $200,000 in billings and said the final undisputed owed amount on that job was $8,417.83 as of March 2025. "If HF1234 is passed, it would…