Prompt Pay
The construction industry is a highly competitive market and MCAO members continually strive to provide the best service while offering aggressive pricing in order to secure work. Unfortunately, they are often left waiting to actually be paid for the work they have completed long after the job itself is complete.
Ohio currently has a prompt pay statute that clearly sets limits on when a PUBLIC owner must pay the prime contractor, when that prime contractor must pay their sub-contractors and those sub-contractors must pay others down the line. However, on the PRIVATE side there is a crucial piece missing in the law. While the exact same limits are in place for payments from the prime contractor to sub-contractors and down-the-line contractors, our statues are silent on when the private owner must pay the prime contractor. The first step in the payment chain is missing and this omission means the flow of payment can take 60, 90, 120 days, leaving contractors who have completed their work - and the subcontractors down stream of them, waiting to be paid.
House Bill 288 is a common-sense fix to the problem we are facing. This legislation would mandate that the private owner be required to pay the prime contractor within 30 days. This bill mirrors the time limits for payments found in public work for private work across the board. This will allow for the prime contractor to pay their subcontractors, equipment providers, and material suppliers as established in current law.
MCAO would like to thank Representatives Cross and Sweeney for their work on this bill. This legislation came about because they heard from contractors in their district who were struggling to make ends meet simply because they were waiting to get paid for work they have completed.
Private Projects Only
Prompt Pay Statutes: Owner to Prime
Interactive 50-state reference for private project payment timing from owners to prime contractors, based on the Levelset 2026 prompt payment guide.
This information is provided for general reference only and does not constitute legal advice. Laws may change. Verify current requirements with legal counsel.

