Construction subcontractors looking to move may want to check out New Mexico, which a national subcontractors’ association ranked the No. 1 state for its overall public policies affecting subcontractors.
The American Subcontractors Association report, “The Policy Environment in the States,” now in its second year, scores each state in policy areas such as retainage and “bid shopping.” It then uses its results to assign an overall score and grade. All states other than New Mexico had failing grades, with overall scores of less than 58 points out of 100.
“The overall policy environment for subcontractors remains unacceptable,” said Vincent Terraferma, ASA president. “While there are some states that improved in particular areas, such as prompt payment and retainage, even high-ranking New Mexico’s overall score was 69 points.”
ASA calculated the overall grade for each state by scoring seven public policy areas:
· Prompt payment protections
· Treatment of pay-if-paid clauses
· Mechanic’s lien protections
· Payment bond protections
· Retainage limitations
· Anti-indemnity protections
· Anti-bid-shopping measures
Kansas showed the most improvement in payment and retainage policies, Kentucky showed the most improved anti-indemnity policy and Tennessee had the most improved mechanic’s lien law.