If a contractor fails to make timely payments to a subcontractor after receiving payment, how many days notice is required for the subcontractor to suspend performance under the Prompt Pay Act?

The Prompt Pay Act establishes specific requirements regarding payment processes between contractors and subcontractors. If a contractor fails to make timely payments to a subcontractor after receipt of payment, the subcontractor must provide a notice period before suspending performance.

According to the statutory guidelines, the subcontractor is required to give 7 calendar days’ notice to the contractor concerning the intent to suspend work due to non-payment. This notice period is designed to ensure that the contractor has a fair opportunity to remedy the payment issue before work is halted, promoting communication and resolution of payment disputes.

In this context, the other options suggest longer notice periods or no notice at all, which do not align with the requirements set forth in the Prompt Pay Act. Hence, understanding the 7-day notice requirement reinforces the importance of adhering to the timelines established in the legislation for effective compliance and dispute resolution between contractors and subcontractors.