Prompt Payment now a Law in Massachusetts : Hooray for Sanity


I read this awhile ago, but thought it important enough to post and probably repeat everyday.  Everyone has dealt with 90+, 120+, 180+ day receivables and if anything that kills a project, kills morale, and passes on costs to others more than being held up for payment I’d like to hear it, but busting your hump on a project and paying your team, your insurance, etc, and delivering a project, service, goods on time and then having to wait forever?  Who decided this was good business except some CFO or accountant who noticed his operational or investment portion of the balance sheet firmed up when they held everyone out for days on end and helped his/her margins?  So with sanity in mind let me post and repeat:

Governor Signs Construction Prompt Payment Legislation Into Law

Governor Deval Patrick signed into law new legislation prescribing language on pay applications, payment flow, change orders and suspension of work for non-payment on August 10.  The bill, filed by Associated Subcontractors (ASM) and supported by the trade unions passed the House on July 8 and passed the Senate on July 31, the last day of the legislative session.

You can see the press release on the AGC web site… hooray for sanity.

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