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Subcontractors press council to tighten timelines in contractor stop‑work bill
Summary
Subcontractors, trade groups and small contractors urged passage of Bill 26‑254 to give contractors and subcontractors a clear statutory right to suspend work for nonpayment, while asking the committee to shorten notice and response timelines and address retainage and public‑work processes.
The Committee on Business and Economic Development heard strong support Dec. 3 for Bill 26‑254, the Contractor's Right to Stop Work for Nonpayment Amendment Act of 2025, which would bar contract terms that prevent contractors or subcontractors from suspending work after an unreasonable payment delay and would set a notice-and-timeline process for suspension.
Adrian Smoot Edwards, president and COO of Regeneracy Inc., said the bill is "critically needed to protect subcontractors' financial stability" and recommended refinements because the bill, as drafted, allows too many days to elapse before a suspension can occur and does not set a timeline for retainage. Cindy Athie, president of Precision Wall Tech in Ward 8, described how cash flow constrains small subcontractors: she said retainage and receivables left her company with roughly 40% of revenue tied up in projects and reported average receivables running 104 days versus an industry standard of 70.
Ike Casey, former executive director of the American Subcontractors Association of Metro Washington, said similar laws in other states often resolve payment disputes simply by making a stop‑work right credible. Matt Tafoe, director of government affairs at Associated Builders and Contractors of Metro Washington, said his membership is neutral and seeks clarifications; he offered to participate in further drafting. Witnesses and the chair discussed "price and proceed" situations—change orders that require subcontractors to perform work before getting formal change‑order billing—creating extended unpaid periods that can approach nine months before subcontractors see payment. Committee members asked witnesses to provide comparative statutory language and options for tightening timelines for notice, response and allowable suspension.
