Subcontractors applaud new AZ law

The American Subcontractors Association Inc. released a report Wednesday lauding Arizona’s recent enactment of laws that strengthen subcontractors’ financial position.

Arizona, Oklahoma and Nebraska were cited as having new laws on the books that strengthen prompt payment and restrict retainage. Retainage is withholding a portion of progress payments due subcontractors, and withholding them without cause.

“There’s a saying in the industry: The only thing worse than no job is a job with a non-paying customer,” said ASA President Timmy McLaughlin.

In singling out Arizona, the report applauded Gov. Jan Brewer for signing SB1375 on May 11, 2010. The law establishes strict time tables for payment. It also strengthens subcontractor rights under retainage rules.

“The ASA chapters supporting these reforms were organized, passionate and worked to build consensus,” McLaughlin said.

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