HB 2332 -- Construction Contracts

Sponsor:  Parson

This bill makes unenforceable any provision, agreement, covenant,
or clause in a construction contract that requires a party to
continue work or to continue to supply materials, labor, or
services when the other party fails to make payments in
consideration for work performed or materials supplied.  Any
provision of a contract stating that a party cannot suspend
performance of contractual obligations when another party does
not make prompt payments is also unenforceable and void against
public policy.  Parties cannot contract to permit, allow, or
authorize a party to withhold or redirect payments otherwise due
another party to the contract or to take possession of equipment,
materials, appliances, property, or tools of another construction
contract.  A construction contract means a contract for private
construction between:

(1)  Any owner and any contractor or supplier;

(2)  Any contractor and any subcontractor or supplier;

(3)  Any subcontractor and any sub-subcontractor or supplier; or

(4)  Any sub-subcontractor and sub-sub-subcontractor or supplier.

The provisions of the bill apply to construction contracts or
agreements entered into after August 28, 2008.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm