6.__Payment of final retainage.__The general contractor shall ensure that any punch list items and any incomplete items identified on the list provided in subsection 5 are corrected or completed within a period of time mutually agreeable to the owner and the general contractor.__When one or more line items on the list are corrected or completed, the general contractor may notify the owner, who shall inspect the work.__If the owner determines that the work has been corrected or completed satisfactorily, the owner shall pay the general contractor in accordance with subsection 7.

7.__Inspections; prompt payment; penalties.__Any inspection required by this section must take place not later than the next regularly scheduled inspection under the contract or as otherwise required by law.__Any payment required under this section must be made and any penalty for nonpayment or late payment of a required payment under this section must be imposed in accordance with Title 10, chapter 201-A.__Any penalty imposed on an owner under this section may not be paid with state funds or with funds that are reimbursable by the State.

8.__Subcontractors.__The owner shall include in uniform construction documents for public improvement projects provisions establishing the same relationship between general contractors and their subcontractors as this section establishes between the owner and the general contractor with regard to payments and retention of payments due under the contract for the project.

Sec. 3. 5 MRSA §1747, as amended by PL 1997, c. 295, §1, is further amended to read: