How does a subcontractor know when a prime contractor gets payment? Is this disclosed for state
dept of transportation agencies, etc.?
1 reply
Sep 30, 2019
While the timing of a public entity's payment to a direct contractor is something that is subject to public records requests, that is not necessarily a quick or efficient way to go about gathering the information.
A sub-tier party may request the information from the GC, or from the public entity pursuant to the Ohio Open Records Law, §149.43 et seq., and use the information received with respect to making a claim for payment pursuant to the state's prompt payment statutes.
Otherwise, there are a couple of different options. Clear communication is always a benefit to any project. Using communication to build a good working relationship wth the GC can open channels through which a sub-tier party may be able to learn when payment from above is forthcoming. Absent this, however, a sub-tier participant can make some educated guesses with respect to the timing of payment from the public entity.
Just like the prompt pay statutes require payment to sub-tiers within a certain timeframe, those rules also govern the timing of payment from the public entity to the GC. For public projects in Ohio, prime contractors are to be paid within 30 days of proper invoice (unless modified by contract). Accordingly, if more than 30 days pass from the end of a general billing cycle, a sub-tier party may potentially make the assumption that the prime contractor has received payment.