Augment Subcontractor Protections.

HB 383 strengthens payment protections for subcontractors in North Carolina construction projects by making "pay if paid" or "pay when paid" contract clauses unenforceable. It requires contractors to pay subcontractors within 7 days of receiving payment for their work (or within 30 days of billing, whichever comes first), with interest at 1% per month for delays beyond that timeframe. The law applies to commercial construction projects but excludes residential contractors and projects with 12 or fewer residential units. It directly affects contractors, subcontractors, and property owners involved in non-residential construction contracts. The bill aims to ensure subcontractors receive timely payment for labor and materials without relying on a contractor’s receipt of funds from an owner.