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Prompt Payment <br />December 2002 <br /> <br />NOTICE TO BIDDERS <br /> <br /> <br />Minnesota Statutes that require prompt payment to subcontractors: <br /> <br />16A.1245 Prompt payment to subcontractors. <br /> <br />Each state agency contract must require the prime contractor to pay any subcontractor <br />within ten days of the prime contractor's receipt of payment from the state for undisputed <br />services provided by the subcontractor. The contract must require the prime contractor to pay <br />interest of 1-1/2 percent per month or any part of a month to the subcontractor on any undisputed <br />amount not paid on time to the subcontractor. The minimum monthly interest penalty payment <br />for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the <br />prime contractor shall pay the actual penalty due to the subcontractor. A subcontractor who <br />prevails in a civil action to collect interest penalties from a prime contractor must be awarded its <br />costs and disbursements, including attorney's fees, incurred in bringing the action. <br /> <br />HIST: 1990 c 541 s 1 <br /> <br /> <br /> <br />337.10 Building and construction contracts; prohibited provisions. <br /> <br />Subd. 3. Prompt payment to subcontractors. A building and construction contract shall <br />be deemed to require the prime contractor and all subcontractors to promptly pay any <br />subcontractor or material supplier contract within ten days of receipt by the party responsible for <br />payment of payment for undisputed services provided by the party requesting payment. The <br />contract shall be deemed to require the party responsible for payment to pay interest of 1-1/2 <br />percent per month to the party requesting payment on any undisputed amount not paid on time. <br />The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. <br />For an unpaid balance of less than $100, the party responsible for payment shall pay the actual <br />penalty due to the party requesting payment. A party requesting payment who prevails in a civil <br />action to collect interest penalties from a party responsible for payment must be awarded its <br />costs and disbursements, including attorney fees incurred in bringing the action. This <br />subdivision does not apply to construction of or improvements to residential real estate as <br />defined in section 326.83, subdivision 17, or to construction of or improvements to attached <br />single-family dwellings, if those dwellings are used for residential purposes and have fewer than <br />13 units per structure. <br /> <br /> <br />HIST: 1997 c 127 s 1; 1998 c 289 s 1,2; 1999 c 116 s 2 <br /> <br />