SB 991 - This act provides that no party to a construction contract, as defined in the act, shall withhold from a lower-tiered party undisputed amounts due to the lowered-tiered party pursuant to the terms of the construction contract or this act. Any contractor or subcontractor who is not paid as required by the contract or this act may, after providing 7 calendar days' written notice to the party failing to make the required payment, suspend performance of its work under its construction contract without penalty, until payment, including interest, required pursuant to this act or its construction contract is made. Any contract affected by a suspension made under this act shall be extended equitably and the contract sum for each affected contract shall be increased by the suspending party's reasonable costs of demobilization, delay, and remobilization. Unless otherwise contracted, the contractor or subcontractor who is not paid in full as required by this act within 60 days after giving notice to suspend shall have the right to terminate its construction contract after providing 3 business days' written notice to the party failing to make the required payment without penalty.
This provisions of this act may not be waived by contract or otherwise. Furthermore, this act only applies to contracts entered into on or after August 28, 2020.
SCOTT SVAGERA