(1) A contractor that receives construction funds for work performed and billed shall pay each subcontractor and supplier in proportion to the work the subcontractor or supplier performed on the work billed, unless otherwise agreed by contract. (2) (a) A contractor shall pay a subcontractor or supplier on or before the later of: (i) 30 calendar days after the day on which the contractor receives construction funds; or (ii) the day after the day on which payment is due. (b) Unless otherwise agreed by contract or for reasonable cause, a contractor that receives funds and does not comply with Subsection (2)(a) shall pay to the subcontractor or supplier: (i) interest in the amount of 1% per month of the amount due, beginning on the day after the day on which payment is due; and (ii) reasonable costs of collection and attorney fees. (c) The amounts described in Subsection (2)(b) are in addition to the payment due to the subcontractor or supplier for work performed and billed. (3) When a subcontractor receives a construction payment under this section, Subsections (1) and (2) apply to the subcontractor.
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