To repeal section 431.180, RSMo Supp. 1996, relating to payment for private construction work, and to enact in lieu thereof one new section relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Section 431.180, RSMo Supp. 1996, is repealed and one new section enacted in lieu thereof, to be known as section 431.180, to read as follows:

     431.180. 1. All persons who enter into a contract for private construction work after August 28, 1995, shall make all scheduled payments pursuant to the terms of the contract. For purposes of this section, the term "persons" shall include the owner, a contractor, subcontractor, material supplier, construction manager, architect, professional engineer or land surveyor.

     2. Any person who has not been paid in accordance with subsection 1 of this section may bring an action in a court of competent jurisdiction against a person who has failed to pay. The court may in addition to any other award for damages, award interest at the rate of up to one and one-half percent per month from the date payment was due pursuant to the terms of the contract, and reasonable attorney fees, to the prevailing party. If the parties elect to resolve the dispute by arbitration pursuant to section 435.350, RSMo, the arbitrator may award any remedy that a court is authorized to award hereunder.

     3. The provisions of this section shall not apply to contracts for private construction work for the building, improvement, repair or remodeling of owner-occupied residential property of four units or less.