As we look forward to another New Year we wonder what it will bring?  Well, the ABC economist made his forecast the other day, it was in a nutshell-if you liked 2011 you will like 2012.  He had a positive forecast for nonresidential construction - an expansion of 1.7%.  In other words another year of surviving!  The good news we are seeing a little “lift” as compared to the recent years of crash & cut.

With survival in mind I bring to your attention what the Nebraska legislature did in 2010.  They adopted changes to the Nebraska Construction Prompt Pay Act, which concerns the payment of contractors and subcontractors on construction projects. The bill expands the current prompt pay requirements in current statue and adds additional provisions regarding claims and disputes.

We all understand that prompt payment of GC’s, Subs and Suppliers is a necessary component of a survival strategy!  So let me tell you about these little known changes to the Nebraska Construction Prompt Pay Act.  Perhaps you can work it in as part of your “just surviving” strategy.

The highlights are the owner must pay the contractor within 30 days of receipt of a payment request and requires contractors and subcontractors to make payment to their subcontractors within 10 days of receipt of payment.

Plus it provided interest penalties of 1% per month or a pro rata fraction thereof can be charged on the unpaid balance if and when the Owner, GC’s or Sub failed to meet the above timelines.However, interest on the unpaid balance can be charged only after the person fails to make a timely payment (30 days and or 10 days) and the person has been notified of the intent to charge interest under the provisions of the Nebraska Construction Prompt Pay Act. 

So lets work together in the construction community to make it to the end of 2012 as a survivor.