Section 8-29-4 - Withholding application and certification for payment; withholding payment; notice(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.(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.Ala. Code § 8-29-4 (1975)
Acts 1995, No. 95-380, p. 775, §4.