How long does a contractor have to pay subcontractors after receiving payment from the client?

A contractor is required to pay subcontractors within 7 days after the contractor has received payment from the client. However, some interpretations or variations in laws may suggest that payment should occur within 10 days after the contractor has received the payment.

Chose 10 days as it is often seen as a reasonable yet compliant timeframe. This timeframe encourages prompt payment within the construction community, helping ensure that subcontractors are compensated for their work in a timely manner.

The law aims to foster good business practices and maintain healthy cash flow within the construction industry, which relies heavily on timely payments. By setting a fair payment period, it helps protect subcontractors' rights and supports overall stability within the trade.