Alabama Release of Production Payment Created by An Assignment

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Multi-State
Control #:
US-OG-554
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Word; 
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This is a form of Release of a Production Payment (Created by An Assignment).

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FAQ

Section 8-38-8 - Notice of Security Breach - Covered Entity. Section 8-38-9 - Violations of Notification Requirements. Section 8-38-10 - Disposal of Records Containing Sensitive Personally Identifying Information.

(a) When a contractor has performed pursuant to his or her contract and submits an application or pay request for payment or an invoice for materials, to the owner or owner's representative, the owner shall timely pay the contractor by mailing via first class mail or delivering the amount of the pay request or invoice ...

On all private projects within the state of Alabama, no more than 10% can be withheld as retainage. However, once a project reaches 50% completion, no more retainage may be withheld. Upon substantial completion of the project, owners must typically release retainage within 60 days.

Code § 8-29-3. Once the job is halfway complete, no additional retainage may be held. Id. Thus, for the first half of the job, the paying party may withhold 10 percent of each pay application.

Code 1975 §8-29-1 thru 8) addresses payment to contractors, subcontractors and sub-subcontractors on private work in Alabama (?The Private Prompt Pay Act?). The Private Prompt Pay Act broadly applies to contracts with an owner to improve real property or perform construction services for an owner.

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.

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Alabama Release of Production Payment Created by An Assignment