Bill Text: DE HB109 | 2011-2012 | 146th General Assembly | Engrossed
Bill Title: An Act To Amend Title 6 Relating To Building Construction And Payment.
Spectrum: Slight Partisan Bill (Democrat 6-2)
Status: (Passed) 2012-06-25 - Signed by Governor [HB109 Detail]
Download: Delaware-2011-HB109-Engrossed.html
SPONSOR: |
Rep. B. Short & Sen. Blevins |
|
Reps. Q. Johnson, Lavelle, Mitchell, Osienski; Sen. Ennis |
HOUSE BILL NO. 109 AS AMENDED BY HOUSE AMENDMENT NO. 2 AND SENATE AMENDMENT NO. 1 |
Section 1.Section 1. Amend §3507 (e), Title 6, Delaware Code, by making insertions as shown by underlining and deletions as shown by strike through as follows:
(e) If a
subcontractor performs in accordance with the provisions of its contract, the
subcontractor shall be entitled to payment from the party with whom the
subcontractor has contracted in accordance with the payment terms of its
contract or this section, whichever applies; provided, however, that a
provision in a contingent payment clause in a construction contract which:It shall be against public policy and
shall be void and unenforceable for any provision of a construction contract or
subcontract agreement to:
(1) States that a contractor assumes the risk of nonpayment of the owner;
(2) Requires a contractor to waive any statutory or other right to commence litigation or arbitration until payment is made to the general or prime contractor;
(3) Makes subject
to payment by the owner the obligation of a contractor and its surety under any
payment or performance bond to make any payment to a claimant under such bond; or
(4) States that a contractor relies on the credit of the owner and not on the credit of the general or prime contractor or of a bonding company; or
(5) Require a dispute or claim between the contractor and subcontractor to be governed or subject to the laws of a state other than Delaware or require litigation, arbitration, mediation or other dispute resolution processes to occur in a state other than Delaware.
is contrary to
the public policy of this State and shall be void and unenforceable.