Ohio's Prompt Payment Act David W. T. Carroll, Esq.
Carroll, Ucker & Hemmer LLC
175 S. 3rd St., Suite 200
Columbus, Ohio 43215
fax: (614) 547-0354
In 1990, the Ohio General Assembly enacted Ohio's Prompt Payment Act (RC Sec.
4113.61) to protect subcontractors from payment delays by contractors if the subcontractors as made a timely request for payment. In essence, the Act requires contractors to pay subcontractors undisputed amounts within 10 days of receiving payment for the subcontractor's work. In the case of retainage, the contractor is required to pay the subcontractor within 10 days of receiving the retainage.
The Act does apply to the construction or improvement of any single, two, or three family detached dwelling houses.
The Act does not require payment if the contractor has good faith allegations or defenses to payment based upon the work performed by the subcontractor.
For violations of the Prompt Payment Act, a subcontractor unpaid after 30 days of the date due and 10 days after the contractor receives payment, may bring a legal action to collect and may recover 18% interest. The prevailing party may be awarded attorney fees, unless the court finds that an award of attorney fees is inequitable.
As of the date of this writing, the latest amendment to the Act was in 2007. As with any legislation, one must check the latest version of the enactment to confirm its current applicatility.
The information on this web site is for general reference
only. To apply the information to an individual situation, you
must consult a qualified professional. Unless you contract for
specific services from us, there is no attorney-client relationship