(a) Nothing in this chapter shall prevent the owner, contractor, or subcontractor from withholding application and certification for payment for any of the following reasons if there is a bona fide dispute over one or more of the following:
(1) Unsatisfactory job progress.
(2) Defective construction not remedied.
(3) Disputed work.
(4) Third party claims filed or reasonable evidence that a claim will be filed.
(5) Failure of the contractor, subcontractor, or sub-subcontractor to make timely payments for labor, equipment, and materials.
(6) Property damage to owner, contractor, or subcontractor.
(7) Reasonable evidence that the contract, subcontract, or sub-subcontract cannot be completed for the unpaid balance of the contract or contract sum.
(b) In the event that there is a bona fide dispute over all or any portion of the amount due on a progress payment from the owner, contractor, or subcontractor then the owner, contractor, or subcontractor may withhold payment in an amount not to exceed 2 times the disputed amount.
(c) An owner is required to notify a contractor in writing within 15 days of receipt of any disputed request for payment. A contractor, subcontractor and sub-subcontractor is required to provide written notification within 5 days of disputed request for payment or notice of disputed request for payment.
(Acts 1995, No. 95-380, p. 775, §4.)
Notes of Decisions
Masiongale Elec.-Mech., Inc. v. Constr. One, Inc., 102 Ohio St. 3d 1 (Ohio 2004).
“Ala.Code 8-29-4 (a contractor may withhold payment for, inter alia, unsatisfactory job progress, defective construction, disputed work, property damage, and if the subcontract cannot be completed for the unpaid balance of the contract sum); 10 Me.”
Boyington v. Bryan, 174 So. 3d 347 (Ala. Civ. App. 2014).
· cites it 2× “Section 8-29-4(a) provides that “[n]oth-ing in this chapter shall prevent the owner .”
Rolin Constr., Inc. v. Wind Clan Constr. Co., Inc. (S.D. Ala. 2020).
· cites it 2× “See Ala.Code § 8-29-4(a)(1) & (2). The Act requires that any contractor or subcontractor who disputes the payment it owes to provide written notification within five days of the “disputed request for payment or notice of disputed request for payment.”
— Ala. Code § 8-29-4(a) — 1 case
Boyington v. Bryan, 174 So. 3d 347 (Ala. Civ. App. 2014).
“Section 8-29-4(a) provides that “[n]oth-ing in this chapter shall prevent the owner .”
— Ala. Code § 8-29-4(a)(1) — 1 case
Rolin Constr., Inc. v. Wind Clan Constr. Co., Inc. (S.D. Ala. 2020).
“See Ala.Code § 8-29-4(a)(1) & (2). The Act requires that any contractor or subcontractor who disputes the payment it owes to provide written notification within five days of the “disputed request for payment or notice of disputed request for payment.”
— Ala. Code § 8-29-4(c) — 1 case
Boyington v. Bryan, 174 So. 3d 347 (Ala. Civ. App. 2014).
“Section 8-29-4(a) provides that “[n]oth-ing in this chapter shall prevent the owner .”
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