§ 9-302. Prompt payment

   (a) In general; exception. -- Except for work done or materials furnished under a contract enumerated in § 9-305 of this subtitle, a contractor or subcontractor who does work or furnishes material under a contract shall be entitled to prompt payment under subsection (b) of this section.

(b) Time for payments. --

   (1) If the contract is with an owner, the owner shall:

      (i) If the contract does not provide for specific dates or times of payment, pay to the contractor undisputed amounts owed under the terms of the written contract, within the earlier of:

         1. 30 days after the day on which the occupancy permit is granted; or

         2. 30 days after the day on which the owner or the owner's agent takes possession; or

      (ii) If the contract provides for specific dates or times of payment, pay to the contractor undisputed amounts owed within 7 days after the date or time specified in the contract.

   (2) Paragraph (1) of this subsection does not apply to any contract between the contractor and:

      (i) The State;

      (ii) A county;

      (iii) A municipal corporation;

      (iv) A board of education; or

      (v) A public authority or instrumentality.

   (3) If the contract is not with an owner, the contractor or subcontractor shall pay undisputed amounts owed to its subcontractors within 7 days after receipt by the contractor or subcontractor of each payment received for its subcontractors' work or materials.

HISTORY: 1989, ch. 553; 1990, ch. 486; 2008, ch. 36, § 5.