What time frame is specified for contractors to pay subcontractors after receiving payment for their work?

The correct time frame for contractors to pay subcontractors after receiving payment for their work in Arizona is indeed 7 days. This requirement is outlined in the Arizona Revised Statutes, which aim to ensure timely payment within the construction industry. It helps to promote cash flow and protect subcontractors from delays that could adversely affect their operations and financial stability.

The statute specifies that once a contractor receives payment for work that includes the services or materials provided by a subcontractor, they are obligated to pay that subcontractor within 7 days. This means that the subcontractors don’t have to wait an extended period for payment after the contractor has already received funds, thereby fostering fairness in financial transactions.

This 7-day requirement is critical in supporting the overall efficiency and reliability of the construction process, ensuring that all parties involved are compensated promptly for their contributions.