SB 615 creates a new section of Missouri law governing construction contracts for non-governmental projects. It defines key terms such as owner, contractor, subcontractor, supplier, and work, and applies broadly across the construction chain, including lower-tier subcontractors and suppliers. The bill declares that its protections cannot be waived or reduced by contract and voids contract terms that attempt to shift risk unfairly or limit payment rights.
The bill prohibits a range of common construction contract provisions, including clauses that allow withholding more than the disputed amount, require continued work without payment, force waiver of claims as a condition of receiving undisputed payment, impose out-of-state law or dispute resolution, or make payment from an upstream party a condition precedent to payment downstream. It also bars certain adverse actions unless written notice and an opportunity to cure are provided, and it requires extra work to be authorized in advance with agreed pricing or a pricing method. The bill further establishes prompt payment rules: owners must pay contractors within 40 days after a proper invoice or pay application for satisfactorily completed work, and contractors must pay subcontractors within 7 days after receiving payment from the owner for that subcontractor’s work.
The bill also creates notice requirements for withholding payment. If an owner withholds payment, it must provide written notice within 15 days stating the amount withheld, the specific reasons, the responsible trade or party, and the apportionment of responsibility. Contractors must pass that notice down to affected subcontractors within 7 days, and they may not withhold more from subcontractors than the owner withheld for that subcontractor’s work. These rights and responsibilities flow through the contracting chain to sub-subcontractors and suppliers at any tier. The bill excludes owner-occupied residential repair, remodeling, or additions to four-unit-or-less properties, and it applies only to contracts entered into on or after August 28, 2025.
Overall, the bill appears aimed at strengthening payment protections and limiting “pay-if-paid,” broad setoff, and other risk-shifting provisions in construction contracting. The available record shows no committee transcript, no recorded votes, and no formal status updates, so there is no documented opposition or support in the provided materials. Based on the text alone, the bill is likely to be viewed favorably by contractors, subcontractors, and suppliers seeking faster and more predictable payment, while owners and general contractors may view it as reducing contractual flexibility and increasing administrative obligations.
SB 615 would add section 436.290 to Missouri’s statutes and make its provisions mandatory for covered construction contracts, overriding contrary contract language. It would invalidate specified clauses as against public policy, impose prompt-payment and notice obligations on owners and contractors, and extend payment protections down the contracting chain to subcontractors, sub-subcontractors, and suppliers. The bill would not apply to certain owner-occupied residential projects and would apply only to contracts entered into on or after August 28, 2025.
No committee discussion or vote history was provided, so there is no recorded legislative sentiment in the available materials. From the bill text, the policy direction is strongly pro-payment-protection and anti-waiver, suggesting likely support from construction industry participants who are paid later in the project chain. At the same time, the bill would likely draw concern from owners and general contractors because it limits contract terms, restricts withholding and setoff practices, and imposes strict notice and payment deadlines.
The main points of contention are likely to be the bill’s restrictions on contract freedom and payment leverage. Owners and contractors may object to the prohibition on pay-if-paid style clauses, limits on withholding beyond the disputed amount, mandatory cure notice before adverse action, and the requirement to pass payments through quickly even when upstream disputes exist. Subcontractors and suppliers are likely to support these provisions because they reduce the risk of nonpayment and improve transparency. Another likely issue is the bill’s broad application to all tiers of the construction chain, which increases compliance obligations and may be seen as burdensome by larger contractors.