Oklahoma’s Fair Pay for Construction Act applies to public contracts, and requires prompt payment of contract monies to contractors and subs.
Here are the Act’s highlights:
- The awarding agency must make progress payments within 30 days after submission of an invoice.
- The awarding agency cannot reduce an invoice of a prime contractor without describing the reasons for reduction within 14 days.
- A prime contractor and/or sub cannot reduce the invoice payment due others without forwarding the reasons for reduction within 7 calendar days.
- Subs are entitled to receive payment no later than 10 calendar days after the prime contractor receives its corresponding payment.
- Retainage cannot exceed 10% but once the gross amount invoiced equals 50% of the contract amount, maximum retainage allowed is 5%.
The Act has numerous exceptions and limitations. For example, it does not apply highway construction.