Section 505 - Owner's payment obligations(a) Construction contract.--The owner shall pay the contractor strictly in accordance with terms of the construction contract.(b) Absence of payment term.--In the absence of a construction contract or in the event that the construction contract does not contain a term governing the terms of payment, the contractor shall be entitled to invoice the owner for progress payments at the end of the billing period. The contractor shall be entitled to submit a final invoice for payment in full upon completion of the agreed-upon work.(c) Time for payment.--Except as otherwise agreed by the parties, payment of interim and final invoices shall be due from the owner 20 days after the end of a billing period or 20 days after delivery of the invoice, whichever is later.(d) Interest.--Except as otherwise agreed by the parties, if any progress or final payment to a contractor is not paid within seven days of the due date established in subsection (c), the owner shall pay the contractor, beginning on the eighth day, interest at the rate of 1% per month or fraction of a month on the balance that is at the time due and owing.(e) Suspension of performance.-- (1) If payment is not received by a contractor in accordance with this section, the contractor shall have the right to suspend performance of any work, without penalty, until payment is received according to the terms of the construction contract. Any procedure in a construction contract that exceeds the procedure in paragraph (2) shall be unenforceable.(2) Suspension of performance in a construction contract may occur in accordance with paragraph (1) or if: (i) Payment has not been made to the contractor in accordance with the schedule established under subsection (c);(ii) At least 30 calendar days have passed since the end of the billing period for which payment has not been received according to the terms of the construction contract, the contractor shall provide written notice to the owner or the owner's authorized agent, via electronic mail or postal service, stating that payment has not been made; and(iii) At least 30 calendar days have passed since the written notice in subparagraph (ii) has been sent, the contractor shall provide at least 10 calendar days' written notice, via certified mail, of the contractor's intent to suspend performance to the owner or the owner's authorized agent.Amended by P.L. TBD 2018 No. 27, § 1, eff. 10/10/2018.1994, Feb. 17, P.L. 73, No. 7, § 5, effective in 60 days.