Relating to a contractor's relations with subcontractors under a public contract; declaring an emergency.
Catchline/Summary:
Creates procedure by which subcontractor can request payment of retainage withheld by contracting agency for work completed by subcontractor.Creates procedure by which subcontractor can request payment of retainage withheld by contracting agency for work completed by subcontractor.
Requires contracting agency to include condition in public improvement contract under which contractor must pay subcontractors in timely fashion or risk action for damages or other relief from contracting agency or disqualification from future public contracts] be subject to cause of action by contracting agency for statutory remedies. Specifies actions that contractor must undertake. Provides exceptions to requirement for timely payment.
Adds to statutory remedies for breach of public improvement contract revocation of bidding prequalification upon second failure to make required payment and specifies that disqualification from future public contracts is available only upon third failure to make required payment.
Becomes operative January 1, 2012.
Declares emergency, effective on passage.
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SB 890
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