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How long can a Prime withhold payment to a subcontractor in Oklahoma on State Military contract?

IndianaPrompt Payment

How long can the Prime to an OK State Military Contract (Camp Gruber) withhold payment to it's subcontractor after said subcontractor designed, manufactured and delivered the requested target system to the military site? It is well over 120 days and Prime claims State has not made payment which we know is false. What recourse do we have?

1 reply

Nov 27, 2019

Oklahoma requires that subcontractors on public projects be paid within 10 days of payment being received by the GC. This requirement is set forth by 61 § 221 et seq., (the "Fair Pay for Construction Act") and only requires that the party requesting payment be entitled to payment and have submitted a proper invoice. Note, however, that Oklahoma allows a payment to be reduced in an amount reasonably necessary to correct work. In order for this provision to apply, the party reducing the payment must provide written notice of the reasons for the reduction to the party to be paid. This requirement is different if the public project is a federal project. The federal Prompt Pay Act requires federal construction contracts to include a clause obligating the prime contractor to pay subcontractors for “satisfactory” performance within seven days of receiving payment from the government.

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