PROMPT PAYMENT LAW URGED
Posted by Batas Internet Media on Monday, January 24, 2011
Under: Articles
PROMPT PAYMENT LAW URGED
January 19, 2011
To: Friends, Colleagues and Contractors
Re: Survey - Proposal to Enact a Prompt Payment Law in the
Philippines
Dear Sirs and Mesdames:
Greetings! I am Mary Rocelyn Lim, a 5th year dual degree student of Law and MBA
from the Far Eastern University – De La Salle University. I am conducting my law
thesis regarding the proposal to enact a prompt payment law for the Philippine
Construction Industry for private projects only.
The Prompt Payment Law, which has been enacted in countries such as U.S.A., U.K.
Australia, Singapore and Japan, makes it mandatory for real estate owners and
developers to pay the prime contractor within a set time, typically 30 days.
This ensures that each party down the line, like sub-contractors, suppliers and
laborers in the payment chain, gets paid on time.
A Prompt Payment Law has this main provision (New Jersey Security of Payments
Act): “The Act requires a project owner to pay a contractor not later than
thirty (30) days from the date the contractor’s bill is received. The Act also
provides for payment of interest on unpaid amounts at prime plus one (1%)
percent in the event payment is not made within the time period provided by the
Act. In addition, the Act allows a contractor, and subcontractor to suspend work
upon seven (7) days written notice.
Recently, Malaysia and Canada are making efforts to the enactment of a similar
law. As such, this topic is ripe for study. I hope you will be able to help in
my research and be part of the making of potentially good-piece legislation for
the construction industry in the Philippines. To do so, please answer the quick
survey as attached in this email (by sending electronically or thru telefax of
PCA Metropolitan – +632-6464266) or click the following link
http://FreeOnlineSurveys.com/rendersurvey.asp?sid=aa0j4gudvg5pflp859235. The
survey can be answered by any Project Manager or Officer of the Company. The
surveys will close on January 20, 2011.
To those whom I've already sent this message, I would just like to remind you,
if you have time, to please answer the said survey. Disregard this message if
you have already responded. Also, to my friends, please forward this message to
contractors or engineers who work for construction firms.
Thank you in advance. If you have any questions, please feel free to email or
contact me.
Mary Rocelyn Lim
5th Year MBA-JD
0917-8817775
(Disclamer)
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