Oklahoma Senate
Sen. Coates says the "Fair Pay for Construction Act" will benefit businesses and workers all over the state.
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Oklahoma Businesses/Families Win with Bill Signing
State Sen. Harry Coates applauded Gov. Brad Henry for signing Senate Bill 1561 and said it will help Oklahoma businesses and families alike. The Seminole Republican is principal author of Senate Bill 1561, which creates the “Fair Pay for Construction Act.” The bill ensures contractors working with the state will be paid in a more timely way.
“The idea behind the bill is a simple one—define standards for payment on public construction projects that are over $25,000 so local contractors aren’t left waiting for months and even years to be paid for the work they do,” Coates said.
“When a contractor or subcontractor does a job for a public entity, it may be the only project they’re working on. If they don’t get paid, it doesn’t just affect that contractor. It means they can’t pay their employees. Those workers and their families are the ones who really suffer,” said Coates. “This will turn that situation around.”
Under SB 1561, the prime contractor must be paid by the agency or entity they’re dealing with within 30 days of submitting an invoice. The entity may reduce the amount of pay requested by any amount that is reasonable to correct current or past deficiencies, as long as the contractor is informed in writing within 7 days of submitting the invoice. The legislation also sets deadlines for the prime contractor to pay sub-contractors.
“For far too many years, some contractors, sub-contractors and suppliers have simply not been getting paid for work when it’s completed. Sometimes they have literally had to wait years to get paid,” Coates said. “We’ve got a lot of qualified and capable contractors out there that have stopped bidding on public projects because they don’t want to subject themselves to financial abuse. I’m hopeful now they’ll come back to the table”
Coates said ultimately, taxpayers will benefit from the new law because of decreased constructions costs due to more competition.
“Our governor stood up for businesses and workers all over the state. I felt from the start that my bill was going to be good for Oklahoma. I’m pleased Gov. Henry agrees,” Coates said.
The “Fair Pay for Construction Act” takes effect November 1, 2004.
Contact info
Senate Communications Office - (405) 521-5774
