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Massachusetts made it easier for construction subcontractors to collect payments for work completed this week when it passed into law a ??prompt payment?? bill. Under the law, schedules will be set for the timely billing and payment of money to subcontractors. If the schedule is not met, bills submitted by subcontractors will be considered conditionally approved.
The law will cover all private construction projects valued at more than $3 million. Public projects are already subject to such requirements.
The New England Regional Council of Carpenters was joined by the Building and Construction Trades and subcontractor associations in lobbying for the bill??s passage to protect smaller companies who struggle to keep cash flow going when payments for work are withheld.
Massachusetts is the 33rd state to enact such a law.