Article 18.--KANSAS FAIRNESS IN PRIVATE CONSTRUCTION CONTRACT ACT
16-1803.Private construction contracts; payment
provisions; provisions against public policy, void, unenforceable; failure to
pay.
(a) Subject to the provisions of subsections (b), (c), (d), (e),
(f), (g) and (h) and
K.S.A.
16-1804 and 16-1805,
and amendments thereto, all persons who enter into a contract for private
construction after the
effective date of this act,
shall make all payments pursuant to the terms of the contract.
(b) The following provisions in a contract for private construction shall be
against public policy
and shall be void and unenforceable:
(1) A provision that purports to waive, release or extinguish the right to
resolve disputes through
litigation in court or substantive or procedural rights in connection with such
litigation except that a contract may require binding arbitration as a
substitute for
litigation or require
non-binding alternative dispute resolution as a prerequisite to litigation;
(2) a provision that purports to waive, release or extinguish rights provided
by article 11 of chapter 60 of the Kansas Statutes Annotated,
and amendments thereto, except that a contract may require a contractor or
subcontractor to provide
a waiver or release of such rights as a condition for payment, but only to the
extent of the amount of payment received; and
(3) a provision that purports to waive, release or extinguish rights of
subrogation for losses or
claims covered or paid by liability or workers compensation insurance except
that a
contract may require waiver of subrogation for losses or claims paid by a
consolidated or wrap-up insurance program, owners and contractors protective
liability insurance, or
project
management protective liability insurance, unless otherwise prohibited under
subsection (b)(5) of K.S.A. 2009 Supp. 40-5403, and amendments thereto.
(c) Any provision in a contract for private construction providing that a
payment from a contractor or subcontractor to a subcontractor
is contingent or conditioned
upon receipt of a
payment from any other private party, including a private owner, is no defense
to a claim to
enforce a mechanic's lien or bond to secure payment of claims pursuant to the
provisions of article 11 of chapter
60 of the Kansas Statutes Annotated, and
amendments thereto.
(d) All contracts for private construction shall provide that payment of
amounts due a contractor
from an owner, except retainage, shall be made within 30 days after the owner
receives a timely,
properly completed, undisputed request for payment.
(e) If the owner fails to pay a contractor within 30 days following receipt
of a timely, properly
completed, undisputed request for payment, the owner shall pay interest to the
contractor
beginning on the thirty-first day after receipt of the request for payment,
computed at the rate of 18% per annum on the undisputed amount.
(f) A contractor shall pay its subcontractors any amounts due within seven
business days of receipt
of payment from the owner, including payment of retainage, if retainage is
released by the owner,
if the subcontractor has provided a timely, properly completed and undisputed
request for
payment to the contractor.
(g) If the contractor fails to pay a subcontractor within seven business
days,
the contractor shall pay
interest to the subcontractor beginning on the eighth business day after
receipt
of payment by the
contractor, computed at the rate of 18% per annum on the undisputed amount.
(h) The provisions of subsections (f) and (g) shall apply to all
payments from subcontractors
to their subcontractors.
History: L. 2005, ch. 156, § 3;
L. 2009, ch. 136, § 6; July 1.
Article 18.--KANSAS FAIRNESS IN PRIVATE CONSTRUCTION CONTRACT ACT
16-1803.Private construction contracts; payment
provisions; provisions against public policy, void, unenforceable; failure to
pay.
(a) Subject to the provisions of subsections (b), (c), (d), (e),
(f), (g) and (h) and
K.S.A.
16-1804 and 16-1805,
and amendments thereto, all persons who enter into a contract for private
construction after the
effective date of this act,
shall make all payments pursuant to the terms of the contract.
(b) The following provisions in a contract for private construction shall be
against public policy
and shall be void and unenforceable:
(1) A provision that purports to waive, release or extinguish the right to
resolve disputes through
litigation in court or substantive or procedural rights in connection with such
litigation except that a contract may require binding arbitration as a
substitute for
litigation or require
non-binding alternative dispute resolution as a prerequisite to litigation;
(2) a provision that purports to waive, release or extinguish rights provided
by article 11 of chapter 60 of the Kansas Statutes Annotated,
and amendments thereto, except that a contract may require a contractor or
subcontractor to provide
a waiver or release of such rights as a condition for payment, but only to the
extent of the amount of payment received; and
(3) a provision that purports to waive, release or extinguish rights of
subrogation for losses or
claims covered or paid by liability or workers compensation insurance except
that a
contract may require waiver of subrogation for losses or claims paid by a
consolidated or wrap-up insurance program, owners and contractors protective
liability insurance, or
project
management protective liability insurance, unless otherwise prohibited under
subsection (b)(5) of K.S.A. 2009 Supp. 40-5403, and amendments thereto.
(c) Any provision in a contract for private construction providing that a
payment from a contractor or subcontractor to a subcontractor
is contingent or conditioned
upon receipt of a
payment from any other private party, including a private owner, is no defense
to a claim to
enforce a mechanic's lien or bond to secure payment of claims pursuant to the
provisions of article 11 of chapter
60 of the Kansas Statutes Annotated, and
amendments thereto.
(d) All contracts for private construction shall provide that payment of
amounts due a contractor
from an owner, except retainage, shall be made within 30 days after the owner
receives a timely,
properly completed, undisputed request for payment.
(e) If the owner fails to pay a contractor within 30 days following receipt
of a timely, properly
completed, undisputed request for payment, the owner shall pay interest to the
contractor
beginning on the thirty-first day after receipt of the request for payment,
computed at the rate of 18% per annum on the undisputed amount.
(f) A contractor shall pay its subcontractors any amounts due within seven
business days of receipt
of payment from the owner, including payment of retainage, if retainage is
released by the owner,
if the subcontractor has provided a timely, properly completed and undisputed
request for
payment to the contractor.
(g) If the contractor fails to pay a subcontractor within seven business
days,
the contractor shall pay
interest to the subcontractor beginning on the eighth business day after
receipt
of payment by the
contractor, computed at the rate of 18% per annum on the undisputed amount.
(h) The provisions of subsections (f) and (g) shall apply to all
payments from subcontractors
to their subcontractors.
History: L. 2005, ch. 156, § 3;
L. 2009, ch. 136, § 6; July 1.
Article 18.--KANSAS FAIRNESS IN PRIVATE CONSTRUCTION CONTRACT ACT
16-1803.Private construction contracts; payment
provisions; provisions against public policy, void, unenforceable; failure to
pay.
(a) Subject to the provisions of subsections (b), (c), (d), (e),
(f), (g) and (h) and
K.S.A.
16-1804 and 16-1805,
and amendments thereto, all persons who enter into a contract for private
construction after the
effective date of this act,
shall make all payments pursuant to the terms of the contract.
(b) The following provisions in a contract for private construction shall be
against public policy
and shall be void and unenforceable:
(1) A provision that purports to waive, release or extinguish the right to
resolve disputes through
litigation in court or substantive or procedural rights in connection with such
litigation except that a contract may require binding arbitration as a
substitute for
litigation or require
non-binding alternative dispute resolution as a prerequisite to litigation;
(2) a provision that purports to waive, release or extinguish rights provided
by article 11 of chapter 60 of the Kansas Statutes Annotated,
and amendments thereto, except that a contract may require a contractor or
subcontractor to provide
a waiver or release of such rights as a condition for payment, but only to the
extent of the amount of payment received; and
(3) a provision that purports to waive, release or extinguish rights of
subrogation for losses or
claims covered or paid by liability or workers compensation insurance except
that a
contract may require waiver of subrogation for losses or claims paid by a
consolidated or wrap-up insurance program, owners and contractors protective
liability insurance, or
project
management protective liability insurance, unless otherwise prohibited under
subsection (b)(5) of K.S.A. 2009 Supp. 40-5403, and amendments thereto.
(c) Any provision in a contract for private construction providing that a
payment from a contractor or subcontractor to a subcontractor
is contingent or conditioned
upon receipt of a
payment from any other private party, including a private owner, is no defense
to a claim to
enforce a mechanic's lien or bond to secure payment of claims pursuant to the
provisions of article 11 of chapter
60 of the Kansas Statutes Annotated, and
amendments thereto.
(d) All contracts for private construction shall provide that payment of
amounts due a contractor
from an owner, except retainage, shall be made within 30 days after the owner
receives a timely,
properly completed, undisputed request for payment.
(e) If the owner fails to pay a contractor within 30 days following receipt
of a timely, properly
completed, undisputed request for payment, the owner shall pay interest to the
contractor
beginning on the thirty-first day after receipt of the request for payment,
computed at the rate of 18% per annum on the undisputed amount.
(f) A contractor shall pay its subcontractors any amounts due within seven
business days of receipt
of payment from the owner, including payment of retainage, if retainage is
released by the owner,
if the subcontractor has provided a timely, properly completed and undisputed
request for
payment to the contractor.
(g) If the contractor fails to pay a subcontractor within seven business
days,
the contractor shall pay
interest to the subcontractor beginning on the eighth business day after
receipt
of payment by the
contractor, computed at the rate of 18% per annum on the undisputed amount.
(h) The provisions of subsections (f) and (g) shall apply to all
payments from subcontractors
to their subcontractors.
History: L. 2005, ch. 156, § 3;
L. 2009, ch. 136, § 6; July 1.