1. (a) Except for work done or materials furnished under a contract enumerated in § 9-305 of this subtitle, a contractor or subcontractor who does work or furnishes material under a contract shall be entitled to prompt payment under subsection (b) of this section.

2. (b)

   1. (1) If the contract is with an owner, the owner shall:

      1. (i) If the contract does not provide for specific dates or times of payment, pay to the contractor undisputed amounts owed under the terms of the written contract, within the earlier of:

         1. 1. 30 days after the day on which the occupancy permit is granted; or
         2. 2. 30 days after the day on which the owner or the owner's agent takes possession; or
      2. (ii) If the contract provides for specific dates or times of payment, pay to the contractor undisputed amounts owed within 7 days after the date or time specified in the contract.

   2. (2) Paragraph (1) of this subsection does not apply to any contract between the contractor and:

      1. (i) The State;
      2. (ii) A county;
      3. (iii) A municipal corporation;
      4. (iv) A board of education; or
      5. (v) A public authority or instrumentality.
   3. (3) If the contract is not with an owner, the contractor or subcontractor shall pay undisputed amounts owed to its subcontractors within 7 days after receipt by the contractor or subcontractor of each payment received for its subcontractors' work or materials.

Added by Acts 1989, c. 553, § 1, eff. July 1, 1989. Amended by Acts 1990, c. 486; Acts 2008, c. 36, § 6, eff. April 8, 2008.