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Bill

S 4750

Prohibits the retention of any amount of payment due and owing for materials delivered and accepted for a public or private construction project

2025 Regular Session Introduced by Monica Martinez

Bill S 4750 ensures contractors and suppliers receive full payment for delivered materials in construction projects, improving cash flow and reducing payment disputes.

REFERRED TO PROCUREMENT AND CONTRACTS
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Bill Summary · S 4750

Summary of Bill S 4750

Bill Number: S 4750
Title: Prohibits the retention of any amount of payment due and owing for materials delivered and accepted for a public or private construction project
Status: Reported and Committed to Finance
Introduced: February 12, 2025
Classification: Bill

Purpose and Intent

Bill S 4750 aims to eliminate the practice of retaining payments for materials that have been delivered and accepted in both public and private construction projects. The intent behind this legislation is to ensure that suppliers and contractors receive timely and full payment for their materials, thereby promoting fair business practices and improving cash flow within the construction industry.

Key Provisions

  • Prohibition of Payment Retention: The bill explicitly prohibits any retention of payment due for materials that have been delivered and accepted. This means that once materials are confirmed as received, the full payment must be made without any deductions or holds.

  • Applicability: The provisions apply to both public and private construction projects, ensuring that all stakeholders in the construction industry benefit from the same payment standards.

Who Would Be Affected

  • Contractors and Suppliers: The primary beneficiaries of this bill are contractors and suppliers who provide materials for construction projects. By ensuring they receive full payment promptly, the bill aims to enhance their financial stability.

  • Project Owners: Owners of construction projects (both public and private) will need to adjust their payment practices to comply with the new regulations set forth by this bill.

  • Construction Industry: Overall, the bill is expected to have a positive impact on the construction industry by fostering better cash flow and reducing disputes related to payment retention.

Procedural and Timeline Aspects

  • Legislative Actions:

    • February 12, 2025: The bill was introduced and referred to the Committee on Procurement and Contracts.
    • May 28, 2025: The bill was reported and committed to the Finance Committee for further consideration.

  • Related Bills: This bill is related to several prior-session bills, including:

    • S 2931
    • S 7652
    • S 980
    • S 6158
    • S 4467
    • S 5498
    • S 1387
    • S 6855
    • A 2212 (companion bill)

Conclusion

Bill S 4750 represents a significant shift in payment practices within the construction industry, aiming to protect the rights of suppliers and contractors by ensuring they receive full payment for materials delivered. As it moves through the legislative process, stakeholders in the construction sector should stay informed about its progress and potential implications for their business operations.

Compiled from official sources — confirm details with the bill’s official record.

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