Maine’s Prompt Payment Act strictly enforces owners’, contractors’ and subcontractors’ payment obligations.
For owners, the Act’s requirements are fairly straightforward. An owner must pay its contractor in accordance with the terms of its contract. If the contract does not include payment deadlines, the owner must pay the contractor’s invoices 20 days after the end of each billing period, or 20 days after delivery of each invoice, whichever is later. If payments to the contractor are subject to retainage, the owner must release those funds within 30 days after final acceptance of the work. (more…)