Section 5.21 Penalties for Late Payment

• Library: Construction Law 2016 Supp

C. (§5.21) Penalties for Late Payment

A party that has not been paid in accordance with the contract terms may file suit or demand arbitration to recover the late payment. Section 431.180.2, RSMo 2000. If the party prevails, the court or arbitrator “may” award increased interest and attorney fees. Id. By virtue of the statute’s use of the word “may,” an award of increased interest or attorney fees is left to the discretion of the court or arbitrator.

The interest rate is not definite. Instead, the rate may be “up to one and one-half percent per month from the date payment was due pursuant to the terms of the contract . . . .” Id.

In Fru-Con/Flour Daniel Joint Venture v. Corrigan Brothers, Inc., 154...