Rep. Sweeney's bipartisan legislation to ensure prompt pay for Ohio contractors heard before Senate Committee

State Rep. Bride Rose Sweeney (D-Cleveland) testified Wednesday on House Bill (HB) 68, her bipartisan legislation with State Rep. Jon Cross (R-Kenton) to ensure that prime contractors are paid promptly and construction projects can move forward across the State of Ohio. The bill passed the House with a strong, bipartisan vote of 86 to 11.

“Contractors rely on timely payments to finance bidding on future work, which creates more good-paying jobs for Ohioans. Late payments jeopardize a contractor’s ability to secure their next job and to ensure reliable paychecks for workers,” said Rep. Sweeney. “House Bill 68 is a reasonable, pro-business, pro-worker bill that fosters a healthy and good-paying construction industry in Ohio.”

The bill closes a gap in state law by amending Ohio’s current Prompt Pay Act. It requires timely payments for prime contractors 30 days after they submit an invoice for undisputed, properly performed work. It creates an even playing field with legal leverage that incentivizes bills to be paid in a timely manner, regardless of if a project falls under the public or private sector. 

Ohio law already requires the following timetable for payments, and HB 68 would close the highlighted loophole:

Public Construction Projects

Owner to Prime – 30 days after invoice unless otherwise agreed (R.C. 126.30 and 153.14)

Prime to Sub – 10 days after prime contractor receives payment from owners (R.C. 4113.61)

Sub to Lower Tiers – 10 days after subcontractor receives payment from prime contractor (R.C. 4113.61)

Private Construction Projects

Owner to Prime – No Provision

Prime to Sub – 10 days after prime contractor receives payment from owner (R.C. 4113.61)

Sub to Lower Tiers – 10 days after subcontractor receives payment from prime contractor (R.C. 4113.61)

HB 68 now awaits additional consideration.