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Minnesota Legislature

Office of the Revisor of Statutes

SF 3114

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to contracts; requiring prompt payment to construction subcontractors;
amending Minnesota Statutes 2006, section 337.10, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 337.10, subdivision 3, is amended to read:


Subd. 3.

Prompt payment to subcontractors.

A building and construction contract
shall be deemed to require the prime contractor and all subcontractors to promptly pay
any subcontractor or material supplier contract within ten days of receipt by the party
responsible for payment of payment for undisputed services provided by the party
requesting payment. The contract shall be deemed to require the party responsible for
payment to pay interest of 1-1/2 percent per month to the party requesting payment
on any undisputed amount not paid on time. The minimum monthly interest penalty
payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than
$100, the party responsible for payment shall pay the actual penalty due to the party
requesting payment. A party requesting payment who prevails in a civil action to collect
interest penalties from a party responsible for payment must be awarded its costs and
disbursements, including attorney fees incurred in bringing the action. deleted text beginThis subdivision
does not apply to construction of or improvements to residential real estate as defined
in section 326.83, subdivision 17, or to construction of or improvements to attached
single-family dwellings, if those dwellings are used for residential purposes and have
fewer than 13 units per structure.
deleted text end