A. Any prime contractor that performs work under a construction contract may suspend performance of the work or may terminate a construction contract if the prime contractor is not properly paid within forty-nine (49) calendar days of the date that the corresponding proper invoice is submitted. Written notice must be received by the owner at least seven (7) calendar days before any such intended suspension or termination.
B. A prime contractor or any entity that suspends performance due to the suspension of a prime contractor, is not required to furnish further performance until such entity is paid for the full amount, less retainage, of work performed, material supplied, or services rendered, together with any costs incurred for demobilization, mobilization and other costs attributable to delay of the work resulting from the shutdown and start-up of a project.
C. Any entity that suspends performance of the work or terminates a construction contract for nonpayment under this act shall not be held in breach of the construction contract.
D. If the owner delays in making payments to the prime contractor, any agreed-upon schedule or completion date and their resulting penalties, damages, bonuses, or rewards shall be extended by the same amount of calendar days that payments were late.
E. If a payment to a prime contractor is received later than as specified in this act, that prime contractor shall be entitled to receive interest pursuant to Section 41.4b of Title 62 of the Oklahoma Statutes. If the prime contractor has already paid a subcontractor, then no interest is due and owing to the subcontractor. If interest is paid to a prime contractor as provided herein, then any subsequent timely payment made to a subcontractor shall bear interest at the same rate paid to the prime contractor. If a prime contractor fails to timely pay a subcontractor, such payment to a subcontractor shall bear interest at the rate of one and one-half percent (1 1/2%) per month.
Added by Laws 2004, c. 256, § 5, eff. Nov. 1, 2004. Amended by Laws 2004, c. 425, § 4, eff. July 1, 2004; Laws 2005, c. 92, § 3, eff. Nov. 1, 2005. Renumbered from Title 15, § 625 by Laws 2005, c. 92, § 6, eff. Nov. 1, 2005.
Structure Oklahoma Statutes
Title 61. Public Buildings and Public Works
§61-1. Bond to be furnished on public works contracts.
§61-2. Filing of bond - Action on bond - Subcontractors.
§61-3. Working day for public employees.
§61-4. Public contracts made on basis of eight-hour day.
§61-5. Penalty for violating two preceding sections.
§61-6. Public buildings - Home products - When to use.
§61-12. Plans and specifications - Approval.
§61-17. Presumption as to consent to jurisdiction of Oklahoma courts.
§61-18. Liability of contractor after completion of contract work.
§61-19. Multi-year contracts for painting and other maintenance of water storage tanks.
§61-60. See the following versions:
§61-60v1. Mandatory consultant and construction contract forms - Exceptions.
§61-60v2. Mandatory consultant and construction contract forms - Exceptions.
§61-62. Construction managers and consultants - Registration and selection.
§61-62.1. Contracts to be in accordance with Public Building Construction and Planning Act.
§61-62.2. Contracts for minor services.
§61-63. Ownership and control of plans, etc.
§61-64. Misdemeanor offenses - Punishment.
§61-65. Application of act - Emergencies.
§61-81. Fair and Open Competition in Governmental Construction Act.
§61-83. Prohibited terms in bid specifications for public improvement projects.
§61-85. Prohibited terms in bid specifications for public improvement projects.
§61-103. Governing law - Solicitation and award of contracts.
§61-103.2. Political subdivision may appoint purchasing agent.
§61-103.4. School districts – Erection of building or making improvements on force account basis.
§61-103.7. Contracts related to fish and wildlife conservation.
§61-105. Contents of bid notices.
§61-106. Bidding documents to be on file.
§61-107. Check, bond or irrevocable letter of credit to accompany bid.
§61-108. Written statement under oath to accompany bid.
§61-111. Time for awarding of contract.
§61-112. Bids, contracts, bonds open for public inspection.
§61-113. Execution of contract.
§61-113.1. See the following versions:
§61-113.1v1. Partial payment - Retainage.
§61-113.1v2. Partial payment - Retainage.
§61-113.2. Withdrawal of retainage - Deposit of securities.
§61-114. Conflict of interest.
§61-115. Collusion among bidders or material suppliers.
§61-116. Disclosure of terms of bids - Public agency engineering estimates.
§61-117. Award to other than lowest bidder.
§61-118. Prequalification of bidders.
§61-119.1. Certain contract to be negotiated when no bid is received.
§61-120. Assignment of contracts.
§61-121. Change orders or addenda.
§61-122. Taxpayer suits to enjoin execution of unlawful contracts.
§61-123. Supervisor's certification to accompany invoices - Exception.
§61-125. Accounting procedure.
§61-126. Construction on force account basis.
§61-127. Contracts made by a public entity - Applicability.
§61-128. Builder’s risk insurance.
§61-131. Splitting of contracts - Punishment and fine.
§61-134. Insurance or bond to be secured from carrier licensed in Oklahoma.
§61-136. Conflicts with federal rules and regulations - Laws governing.
§61-137. Termination of certain unperformed contracts.
§61-139. Authority to enter into cooperative purchasing agreements.
§61-201. Short title – Public Facilities Act.
§61-202. See the following versions:
§61-204. Office of Management and Enterprise Services - Duties.
§61-207.2. Architects, engineers or land surveyors - Employment.
§61-208.1. Contracting for construction services - Fee.
§61-208.2. State Construction Revolving Fund.
§61-208.3. Exempted entities - Compliance with act.
§61-210. Model shared savings contract.
§61-211. Selection of equipment on life cycle cost analysis basis.
§61-213. Public building energy and environmental performance program.
§61-215. Short title - Public Construction Management Act for Political Subdivisions.
§61-217. Construction managers – Written contract required – Procedure for awarding work.
§61-223. Construction contracts - Progress payments - Reduction.
§61-224. Payment of subcontractor or sub-contractor or supplier - Time limit.
§61-225. Suspension or termination of construction contract - Payment.
§61-226. Retainage of portion of payment due - Release.
§61-308. Oil or gas lease of lands of public institutions.
§61-310. Oil and gas leases upon described state-owned lands.
§61-311. Jurisdiction over lands covered by lease.
§61-314. Use of other state-owned lands by lessees.
§61-316. Payment of proceeds into Maintenance of State Buildings Revolving Fund.
§61-317. Oil and gas or mineral leases of state lands other than Capitol lands and parkways.
§61-318. Lease of property formerly occupied by Russell Girls Home.
§61-319. Purpose or use for which leased.
§61-322. Easement and right-of-way grants - Exemptions.
§61-324. Director to take charge, manage and lease Capitol Building Lands.
§61-325. Inventory and appraisal - Sale.
§61-326. Disposition of proceeds - Leases for oil and gas purposes.
§61-327. Procedures for disposal or lease of certain state-owned real property.
§61-327.1. Written proposals for state-owned properties not subject to disposition.
§61-327.2. Proposals for investment real property.
§61-330.1. Recording fee for Office of Management and Enterprise Services.