Prompt Payment Act Archive

2022 Construction Industry Court Rulings of Interest (So Far)

Below is a brief summary of two rulings issued by Ohio courts so far in 2022 that are of interest to the construction industry. Fiscal Officer’s Failure to Certify That Funds Have Been Lawfully Appropriated Results In a Void Contract A recent case issued by Ohio’s First District Court of Appeals (Hamilton County) in March […]

Prompt Pay Act Still Has Teeth

We helped negotiate, draft and pass Ohio’s Prompt Payment Act (R.C. 4113.61) in the early 1990s. It became a model for many other states. The Act provides that once a contractor gets paid for a subcontractor’s (or supplier’s) work, he must pay the subcontractor within ten (10) calendar days after receipt. If he fails to […]