Rep. Sweeney's Bipartisan Prompt Pay Legislation Passes the Ohio House of Representatives

COLUMBUS – State Rep. Bride Rose Sweeney (D-Westlake) today applauds the passage of House Bill (HB) 203, bipartisan legislation with Rep. Bill Roemer (R-Richfield) to keep construction projects moving across the State of Ohio by ensuring that contractors are paid on time.

“House Bill 203 – better known as the ‘Pay Your Bills’ bill – levels the playing field for Ohio contractors working on large, commercial construction projects by making sure they are paid on time. This is truly a pro-worker, pro-business bill,” said Rep. Sweeney. “When more contractors are paid on time, they can afford to bid for additional projects. At a time when the demand for skilled contractors is greater than ever before, keeping more construction projects moving forward will help make Ohio a more prosperous state.”

The bill updates Ohio’s Prompt Pay Act to require owners of private sector construction projects to pay their prime contractors in 30 days or less after work is complete and invoices are provided. Many contractors have had to wait anywhere from 60 to 150 days after the successful completion of a project to receive payment. The construction industry suffers from 51 days sales outstanding which is the longest of any industry in the US.

“We want to maintain Ohio’s reputation as a business-friendly state,” said Rep. Roemer. “Unfortunately, it is not unheard of for contractors to have to wait months after completing a project to receive payment. This legislation will even the playing field in the construction industry and keep projects moving in a timely fashion.”

This “prompt pay” requirement is already in place for public sector project owners, such as state and local governments. The bill addresses an imbalance in the private sector and ensures that all parties on a construction project are paid in a reasonable timeframe.

HB 203 now awaits further consideration before the Ohio Senate.