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Each contract of a municipality must require the prime contractor to pay any subcontractor within ten days of the prime contractor's receipt of payment from the municipality for undisputed services provided by the subcontractor.
(2) (a) Within 7 days after a contractor receives a periodic or final payment from an owner or a state agency, the contractor shall pay the subcontractor, if any, the full amount due the subcontractor in ance with the subcontract for work performed or materials provided in ance with that subcontract.
In the case of a subcontractor, payment is due to the sub fourteen (14) days after the contractor's receipt of each progress or final payment or fourteen (14) days after receiving the subcontractor's invoice, whichever is later.
In 1982, Congress passed the Prompt Payment Act to require Federal agencies to pay their bills on a timely basis; to pay interest penalties when payments are made late, and to take discounts.
For contracts in written form, the statute of limitations is eight years. (Refer to §27-2-202(1).) For oral contracts, the statute of limitations is five years.
A subcontractor is a person or entity that has been awarded by the general contractor the performance of part of the work or services of an existing contract entered between the general contractor and the (original) contracting party.