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Prompt Payment Laws in the 50 StatesPublished by:Foundation of the American Subcontractors Association, Inc.1004 Duke StreetAlexandria, VA 22314-3588Telephone: (703) 684-3450Email: ASAOffice@asa-hq.comWeb site: www.fasaonline.com65 East State Street, Suite 1800Columbus, Ohio 43215-4294Donald W. Gregory, Esq.Eric B. Travers, Esq.General Counsel to the American Subcontractors Association, Inc.Telephone: (614) 462-5400Web site: www.keglerbrown.comCopyright 2019 American Subcontractors Association, Inc. All rights reserved. No part of this publication may be reproduced, storedin a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, withoutobtaining prior written permission from the copyright owner.DISCLAIMER: This publication is for informational purposes only and does not contain legal advice. Individual circumstances varywidely, so readers should not act on the information provided herein and should consult legal counsel for specific legal advice.000000\006915\4840-4863-1923v1
About ASA and FASAThe American Subcontractors Association amplifies the voice of and leads trade contractors to improvethe business environment for the construction industry and to serve as a steward for the community.The ideals and beliefs of ASA are ethical and equitable business practices, quality construction, a safeand healthy work environment, integrity and membership diversity.The Foundation of the American Subcontractors Association, Inc., a section 501(c)(3) organization underthe U.S. Internal Revenue Code, is the educational arm of ASA. FASA is an independent entity devotedto development of quality educational information, providing financial support to develop manuals,videos-on-demand, webinars, and other materials.AcknowledgmentsWe want to recognize the contributions of Kegler Brown Hill & Ritter summer associate GaribaldyVolney to this publication.THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.2
Prompt Payment Laws in the 50 States 2019OWNER TOPRIMEPRIME TOSUBSUB TOLOWERTIERSINTEREST/FEESOTHER COMMENTS7 days afterpayment unlessotherwise agreed.§ 8-29-3(c)1% per month (§ 8- 293(d)); attorney fees to theprevailing party (§ 8- 296).Contracting parties cannot waive theright to receive interest before apayment is due § 8-29-5An owner is required to notify acontractor in writing within 15 days ofreceipt of any disputed request forpayment. A contractor, subcontractor,or sub-subcontractor is required toprovide written notification within fivedays of disputed request for paymentor notice of disputed request forpayment. § 41-16-3(c)STATECITEAlabama PrivateAla. Code §§ 829-1 to 8-29-830 days after invoiceunless otherwiseagreed. § 8-29-3(a)7 days afterpayment unlessotherwise agreed.§ 8-29-3(b)Alabama PublicAla. Code§ 41- 16-3.30 days afterinvoice. § 41-16-3(a)7 days afterpayment unlessotherwise agreed.§ 41-16-3(a).7 days afterpayment unlessotherwise agreed.§ 41-16-3(a).Interest at the rate“currently charged by thestate”. § 41-16-3(a). Nofees provision.Alaska PrivateAlaska - PublicNonen/an/an/an/aAlaska Stat.§§ 36.90.20036.90.290,(Interest rateon amountsdue set byAlaska Stat.§ 45.45.010).8 working daysafter the primecontractor receivespayment from theowner.§ 36.90.210(a)(1)8 working daysafter thesubcontractorreceives paymentfrom the primecontractor.§ 36.90.210(b)(2)Arizona PrivateAriz. Rev. Stat.§§ 32- 1129 to32-1129.06.30 or 21 days(depending onsource of publicfunds) from later ofinvoice or politicalsubdivision’s actualreceipt of grantmoney.§ 36.90.200(a)7 days after approvalof invoice (i.e., notless than 21 daysafter invoice) unlessotherwise providedin the contract andbid plans and specs.§ 321129.017 days after theprime contractorreceives paymentfrom the owner.§ 32-1129.02(B)7 days after thesubcontractorreceives paymentfrom the primecontractor. § 321129.02(B)Interest at the legal ratefor payments due theprime, the 21st day afterpayment is due or, forlower tiers, from the datedue. § 36.90.200(b)§ 36.90.210(a)(3)§ 36.90.210(b)(3). Nofees provision.1.5% per month; attorneyfees to “successful party.”§ 32-1129.02(H); § 321129.01(Q)Right to suspend work controlled bystatute.THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.3
OWNER TOPRIMEPRIME TOSUB7 days afterpayment “unlessotherwise agreed"except no contractmay "materiallyalter" acontractor’s,subcontractor’s orsupplier's right to"prompt andtimely payment."A.R.S. § 34-221 (g)n/aSTATECITEArizona PublicAriz. Rev. Stat.§§ 34- 221,412576, 41-2577,28-6924(highway),schoolsexempt: § 15213.14 days after invoiceapproved (i.e., notless than 21 daysafter invoice). A.R.S.§ 34- 221 (C)(2)Final payment 60days afteracceptance. A.R.S.§ 34- 221 (C)(5)Arkansas PrivateArkansas PublicNonen/aArk. Code§ 19- 4-1411.California PrivateCal Bus & ProfCode § 7108.5;Cal. Civ. Code§ 8800Maximum of 15working days afterinvoice, excludingtime of transmittalfrom one party toanother. Ark. Code§ 19-4-1411(a)30 days afterinvoice. § 8800(a)SUB TOLOWERTIERSINTEREST/FEES7 days afterpayment “unlessotherwise agreed"except no contractmay "materiallyalter" acontractor/subcontractor/osupplier's right to"prompt andtimely payment."A.R.S. § 34-221 (g)n/a1.0% per month. A.R.S.§ 34-221 (j) & (k). Nofees provision.No provisionNo provision8% per annum. Ark.Code § 19-4-1411(a)(3).No fees provision.No later than 7days after theprime contractorreceives paymentfrom the owner,unless otherwiseagreed. § 7108.5(a)No later than 7days aftersubcontractorreceives paymentfrom the primecontractor, unlessotherwise agreed.§ 7108.5(a)2% per month for primesand subcontractors andowner. Prevailing partyentitled to attorney fees& costs. § 7108.5(c);§ 8800(c)OTHER COMMENTSn/aIf there is a good faith dispute betweenthe owner and direct contractor as to aprogress payment due, the owner maywithhold from the progress paymentan amount not in excess of 150 percentof the disputed amount. § 8800(b)THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.4
STATECITEOWNER TOPRIMEPRIME TOSUBCalifornia PublicCal PubContract Code§§ 10261.5;10262; 10853.Cal Bus & ProfCode § 7108.5.30 days afterinvoice.§ 10261.5(a). (39days for stateuniversities).§ 10853.Colorado PrivateNonen/aWithin 7 days afterprime contractorreceives paymentfrom public owner.Cal Bus & ProfCode § 7108.5.Cal.Pub.Cont.Code§§ 10262, 10262.5,20104.50(c)n/aColorado PublicColo. Rev.Stat. §§ 24-91101 to 2491.103.“at the end of eachcalendar month, oras soon thereafter aspracticable”. § 2491- 103(1)(a)7 days after theprime contractorreceives paymentfrom the owner.§ 24-91-103(2)Connecticut PrivateConn. Gen.Stat. §§ 42158i to 42158j.30 days after theinvoice. § 42158j(a)(1)30 days after theprime contractorreceives paymentfrom the owner.§ 42-158j(a)(2)Connecticut PublicConn. Gen.Stat. §§ 4a- 71to 4a-75, 4941c.45 days after invoiceunless otherwiseagreed. § 4a-71(b)30 days after thesubcontractorreceives paymentfrom the owner.§ 49-41a-c.SUB TOLOWERTIERSINTEREST/FEESOTHER COMMENTSWithin 7 days afterreceipt of paymentfrom primecontractor. Cal Bus& Prof Code§ 7108.5.Cal.Pub.Cont.Code§§ 10262, 10262.5,20104.50(c)n/a2% per month forprimes. Prevailing partyentitled to attorney fees& costs. § 8802c. 10%per annum for stateagencies. § 10261.5(a)For public utilities, see Cal. Civ. Code§ 8802.7 days after thesubcontractorreceives paymentfrom thesubcontractor.§ 24-91-103(2)30 days after thesubcontractorreceives paymentfrom the primecontractor. § 42158j(a)(3)For payments to subs,15% per annum oramount specified incontract “whichever ishigher.” No feesprovision. § 24-91-103(2)1% per month; attorneyfees only upon findingpayment “unreasonablywithheld.” § 42-158j(c)(4)30 days after thesubcontractorreceives paymentfrom the primecontractor. § 4941a-cFor payment to prime,interest at rate equal to"monthly effective yieldfor the [state's] ShortTerm Investment Fund."§ 4a-71(a). No feesprovision.n/aNotice of nonpayment must be givenby certified mail. Statute gives subs andsuppliers a direct right of action againstowners who: (1) do not pay the primecontractor as required by this statute;and (2) do not pay the sub or supplierupon receipt of the sub or supplier'swritten demand. § 42-158j(e)THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.5
OWNER TOPRIMEPRIME TOSUBSTATECITEDelaware PrivateDel. Code,Title 6, §§ 3501to 3509Within 30 days afterinvoice or "end ofbilling period,"whichever is later.§ 3507(c); §3506(a)(1)30 days after theprime contractorpayment from theowner unlessotherwise agreed.§ 3507(d); §3506(b)(1)Delaware PublicDel. Code,Title 29,§ 6516(f)Progress paymentsby mutualagreement oncontracts of lessthan 90 days. For allother contractsmonthly progresspayments must bemade within 21 daysafter the estimate ofwork is certified andapproved. OR If theapproval of a federalagency is required,the payment shall bedeemed timely if thepayment is madewithin 10 days of arequired federalagency's approval.§ 6516(f)(1)Within 21 daysafter the primecontractor receivespayment from theowner, unlessotherwise agreed.§ 6516(f)(7)SUB TOLOWERTIERSINTEREST/FEESOTHER COMMENTS15 days after thesubcontractorreceives paymentfrom thesubcontractorunlessotherwise agreed.§ 3507(d)Interest required but ratenot specified; § 3506(a)(2)and (b)(2). Unlessotherwise agreed,attorney fees to"substantially prevailingparty." § 3509(b)Contingent payment expresslyunenforceable § 3507(e).Within 21 daysafter the primecontractor receivespayment from thesubcontractor,unless otherwiseagreed. § 6516(f)(7)A subcontractor ormaterial supplier mayrequire that interestunder this subsectionaccrue on the unpaidbalance at a rate not toexceed 2 % above theprime interest rate asestablished by the FederalReserve. § 6516(f)(7)(d)Any amount of an interest penaltywhich remains unpaid at the end of any30-day period shall be added to theprincipal amount of the debt andthereafter interest penalties shall accrueon such amount. § 3506(c).Damages for "amounts wrongfullywithheld" permitted. § 6516(f)(8)THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.6
STATECITEDistrict ofColumbia PrivateD.C. Code§ 27-132-136District ofColumbia PublicD.C. Code§§ 2- 221.01 to2- 221.06.Florida PrivateFla. Stat.§ 715.12Fla. Stat.§ 713.346(2)Florida - PublicFla. Stat.§§ 215.44,218.735,255.073,255.076,337.141OWNER TOPRIMEPRIME TOSUB7 days after the datespecified in thecontract unlessotherwise agreed, 15days after the earlierof (a) acceptance,(b) Owner takespossession or (c)payment request.D.C. Code § 27-13230 days, excludinglegal holidays, afterinvoice unlessotherwise agreed.§ 2-221.02(a)(2)(ii)7 days after theprime contractorreceives paymentfrom owner.D.C. Code § 27134(a)Payment due percontract terms, onceprime has submitteda request forpayment and allaffidavits andwaivers required forowner to makepayments.§ 715.12(4)Invoices are to beapproved no laterthan 20 days afterreceipt by CFO.Payment ofapproved invoicesshall occur no laterthan 10 days.§ 215.422(1)(2).FDOT gets 75 daysfrom acceptance forfinal payment.FDOT § 337.141.According to theterms of thecontract; 30 daysafter receipt ofpayment.§ 713.346(2)7 days after primecontractor receivespayment fromowner. § 2221.02(d)(1)Within 10 daysafter thecontractor's receiptof payment fromowner.§ 255.073(3)SUB TOLOWERTIERSINTEREST/FEES7 days aftersubcontractorreceives paymentfrom primecontractor.D.C. Code § 27134(a)1.5% per month.Reasonable attorney feesto prevailing contractor.§ 27-133(1), § 27-135(1)7 days aftersubcontractorreceives paymentfrom primecontractor. § 2221.02(d)(3)According to theterms of thecontract; 30 daysafter receipt ofpayment.§ 713.346(2)Interest at ratedetermined by mayoralregulation § 2221.02(a)(1). No feesprovision.Within 7 days afterthesubcontractor'sreceipt of paymentfrom primecontractor.§ 255.073(3)Interest at 1% per month.§ 255.073(4). For eachday after 75 days, or 30days after settlement of aclaim, the departmentshall pay to thecontractor interest.FDOT § 337.141(3)OTHER COMMENTSGreater of contractinterest rate or thatspecified by CFO per§ 55.03. § 715.12(5)(a).§ 715.12(6)(a)No fees provision.Award court costs and reasonableattorney fees, including fees incurredthrough any appeal, to the prevailingparty, if the court finds that the nonprevailing party withheld any portionof the payment that is the subject ofthe action without any reasonable basisin law or fact to dispute the prevailingparty's claim to those amounts.§ 255.076.Separate statutes for state (Ch. 255)and local entities (Ch. 218).THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.7
OWNER TOPRIMEPRIME TOSUBSUB TOLOWERTIERSINTEREST/FEESOTHER COMMENTS10 days aftersubcontractorreceives paymentfrom primecontractor. § 1311-4(b)Interest at 1% per monthunless otherwise agreed.§ 13-11-7. Fees for“prevailing party” § 1311-8Once the sub's work is equal to 50% ofthe subcontract value, the contractormust reduce retainage "in the samemanner as the contractor's retainage isreduced by the owner." The contractorhas 10 days after receiving the owner'spayment of retainage to pass thatthrough to its subs. § 13-11-6Once the sub's work is equal to 50% ofthe subcontract value, the contractormust reduce retainage "in the samemanner as the contractor's retainage isreduced by the owner." The contractorhas 10 days after receiving the owner'spayment of retainage to pass thatthrough to its subs. § 13-11-6STATECITEGeorgia PrivateGa. Code§§ 13- 11-1 to13-11-1115 days afterinvoice. § 13-11-4(a)10 days after primecontractor receivespayment fromowner. § 13-114(b)Georgia - PublicGa. Code§§ 13- 11-1 to13-11-1110 days afterreceipt of paymentfrom owner. § 1311-4(b)10 days afterreceipt of paymentfrom primecontractor. § 1311-4(b)Interest at 1% per monthunless otherwise agreed.§ 13-11-7; Fees for“prevailing party” § 1311-8Hawaii PrivateHRS §§ 444-1and 444- 2515 days after invoice(exclude smalllocalities — countieswith populationsless than 10,000,municipalities withpopulations lessthan 2,500). § 13114(a)No provision.Within 10 daysafter the primecontractor receivesan invoice fromthe subcontractor.§ 444-25Within 10 daysafter the primecontractor receivesan invoice fromthe subcontractor.§ 444-25The subcontractor shallbe entitled to receiveinterest on the unpaidamount at the rate of1.5% per month from thedate payment is due.§ 444-25Hawaii - PublicHRS §§ 103-1030 days afterinvoice. § 103-10(a)Within 10 daysafter primecontractor receivespayment fromowner. § 10310.5(a)No provision.Idaho - PrivateNonen/an/an/aPrime rate for eachcalendar quarter plus 2%,beginning on the 30thday following receipt ofservices, whichever islater, and ending on thedate of the check. § 10310(a)n/aIf payment is contingent upon receiptof funds held in escrow or trust, thecontractor shall clearly state this fact inthe contractor's solicitation of bids.Interest shall not begin to accrue uponany unpaid balance until after the 10thday following receipt by the contractorof an invoice by the subcontractor.§ 444-25THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.8
OWNER TOPRIMEPRIME TOSUBSUB TOLOWERTIERSSTATECITEIdaho - PublicIdaho Code§ 67- 2302.60 days after invoiceunless otherwiseagreed. § 67-2302(2)No provisionIllinois PrivateTitle 815 ILCS603/1- 603/99.15 days afterreceipt of paymentby primecontractor fromowner. 815 ILCS603/10(2)15 days afterreceipt of paymentby subcontractorfrom primecontractor. 815ILCS 603/10(2)Illinois - PublicTitle 50ILCS505/1 505/9(localities); title30 ILCS540/0.01540/7 (state).40 days after invoice(25 to approve, 15to pay). Paymentdeemed approved25 days after receiptof invoice unlessowner notifiescontractor in writingof reason forwithholdingpayment. 815 ILCS603/10(1)90 days after invoice(30 days to approveand 60 days to pay).State: 30 ILCS540/3 2(1.05)Localities: 50 ILCS505/3 & 50 ILCS505/415 days after primecontractor receivespayment fromowner. State: 30ILCS 540/7(b)Localities: 50 ILCS505/915 days aftersubcontractorreceives paymentfrom primecontractor. State:30 ILCS 540/7(b)Localities: 50 ILCS505/9Indiana PrivateNonen/an/an/aNo provisionINTEREST/FEESInterest penalties are dueautomatically when billsbecome overdue. It shallbe up to each vendor tocalculate and invoiceinterest at the timepayment is due on theprincipal. Interest at thestatutory rate.§ 67-2302(3) (7)Interest at the rate of10% per annum. 815ILCS 603/15(a). No feesprovision.OTHER COMMENTSContractor or sub may suspendperformance without penalty if, after 7calendar days written notice, paymentas required is not made. 815 ILCS603/15(bInterest at 1% per month,.033% per day, forprimes. State: 30 ILCS540/3-2(1.05); Localities:50 ILCS 505/4; 2% permonth for subs and subsubs; State; 30 ILCS540/7(b) Localities: 50ILCS 505/9. No feesprovision.n/aTHIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.9
STATECITEIndiana PublicBurns Ind.Code Ann. § 517-5-1Iowa - PrivateIowa - PublicNoneIowa Code§§ 573.12and 573.14.OWNER TOPRIMEPRIME TOSUBState: 35 days afterinvoice. IC 5-17-51(b)(1). Localities: atleast 45 days afterinvoice. IC 5-17-51(c)(3). Somehighway projects aresubject only tohighway dept. rules.IC 5-17-5-2n/aTen days afterreceipt of payment.14 days after receiptof a paymentrequest unlessextended bycontract to amaximum of 30days.Iowa Code§ 573.12(2)(a)(1)Kansas PrivateKan. Stat. 161801 to16- 1807.30 days after receiptof timely, properlycompleted,undisputed requestfor payment.16-1803(d)SUB TOLOWERTIERSTen days afterreceipt of payment.INTEREST/FEESOTHER COMMENTSInterest at 1% per monthIC 5-17-5-1(a). must bedistributed tosubcontractors ifcontractor was “unable tomake timely payments”IC 5-17-5-4(b). No feesprovision.(Ind. Code Ann. §§4-13.6-7-4(a), 5-165.5-5.)(Ind. Code Ann. §§4-13.6-7-4(a), 5-165.5-5.)n/an/an/a7 days after thecontractor receivespayment from theowner for thatsubcontractor'swork, or, areasonable timeafter thecontractor couldhave receivedpayment for thesubcontractor'swork, if the reasonfor nonpayment isnot thesubcontractor'sfault. § 573.12(2)7 business daysafter primecontractor receivespayment fromowner. 16- 1803(f)No provisionInterest shall accrueduring the periodcommencing on day 31following the completionof work and ending onthe date of payment.§ 573.14If the contractor receives an interestpayment under § 573.14, the contractorshall pay the subcontractor a share ofthe interest payment proportional tothe payment for that subcontractor'swork. § 573.12(3)7 business dayssubcontractorreceives afterpayment fromprime contractor.16- 1803(f)Interest at 18% per year.16-1803(e). Fees for“prevailing party.”16-1806.Right to suspend controlled by statute.16-1805.Provisions inapplicable to constructionof single and multi-family residentialhousing with 4 units or less § 16-1807THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.10
STATECITEKansas - PublicMostconstructionother thanroad work:Kan Stat.§§ 16-1901 to16-1908.Kentucky Private &PublicLouisiana PrivateConstructionnot covered byChapter 16:Kan. Stat.§§ 75- 6401 to75-6407KRS§§ 371.400 to371.425: (the"KentuckyFairness inConstructionAct"; cf.§§ 45.45145.458(promptpayment bygovernment ingeneral).La. Rev. Stat.§ 9:2784La. Civ. CodeArt. 2772OWNER TOPRIMEPRIME TOSUBCh. 75: Per contractor, if not addressedin contract, 30 daysafter invoice forprogress payments.§ 75-6403(b)Ch. 75: Noprovision.Ch. 16: 30 days afterreceipt of invoice.§ 16-1903(c)30 business daysafter invoice forprogress payments.KRS § 371.405(5);contractor must givenotice ofnonpayment after 25business days; 45business days forprogress paymentsby schools. KRS§ 371.405(6); finalpayment 30 daysafter substantialcompletion.Owner liable to paylaborer’s privilege 10days after arbitrationof amount or ifcontractor fails todispute laborer’saccounting. La. Civ.Code Art. 2772SUB TOLOWERTIERSINTEREST/FEESOTHER COMMENTSCh. 75: Noprovision.Ch. 75: Interest at 1.5%per month, § 75-6403(d);Ch.16: 7 businessdays after primecontractor receivespayment fromowner if sub hasmade properrequest. § 161903(f)Ch.16: 7 businessdays aftersubcontractorreceives paymentfrom primecontractor if subsub has madeproper request.§ 16-1903(h)Ch. 16: 18% per annum15 business daysafter primecontractor receivespayment fromowner. KRS§ 371.405(8)15 business daysafter subcontractorreceives paymentfrom primecontractor. KRS§ 371.405(8) and(10)Interest at 12% per year.KRS § 371.405(6) and (9).Fees only if losing party“acted in bad faith.” KRS§ 371.415There are two exceptions to the rules:they don't apply to: (a) "residential"construction or (b) construction forregulated utilities. § 371.42514 days afterpayment.§ 9:2784(c)14 days afterpayment.§ 9:2784(c)Penalty of 1.5% per dayup to 15% max; attorneyfees for collection, andfees for defending againstclaim “without merit.”§ 9:2784(c)If for any reason the contractorreceives less than the full paymentfrom the owner, then the contractorshall be obligated to disperse only thefunds received on a prorated basis withthe contractor, subcontractors, andsuppliers each receiving a proratedportion based on the amount due onthe payment. § 9:2784(b)THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.11
STATECITELouisiana PublicLa. Rev. Stat.§ 9:2784;38:2191Maine - Private& Public10 M.R.S.§ 1113; 1114;1118. 5 M.R.S.§ 155414 M.R.S.§ 1602-COWNER TOPRIMEPRIME TOSUBAll progressive stagepayments and finalpayments shall bepaid by contract.Final paymentwithin 45 days afterreceipt of “clear liencertificate.”Progressive stagepayment within 45days after receipt ofcertified request forpayment.§ 38:2191(A) (B)Progress paymentsper contract. If notspecified in contract,then 20 days afterinvoice or end ofbilling periodwhichever is later;final payment 30days after “finalacceptance.”§ 1113(1) - (3).§ 1116(1). Within25 days after receiptof invoice, or within15 days followinganother date bycontract. 5 M.R.S.§ 155414 days after primecontractor receivespayment fromowner. § 9:2784(c)Per contract ornotwithstandingany contraryagreement, 7 daysafter primecontractor receivespayment fromowner or invoice,whichever is later.§ 1114(1)-(3)SUB TOLOWERTIERSINTEREST/FEES14 days aftersubcontractorreceives paymentfrom primecontractor.§ 9:2784(c)Legal interest andattorney fees for badfaith. § 48:251.5(c);38:2191(B)Per contract ornotwithstandingany contraryagreement, 7 daysafter subcontractorreceives paymentfrom primecontractor orinvoice, whicheveris later. § 1114(1)(3)Interest on late paymentsaccrues at the judgmentrate or contract rate ,whichever is greater(current judgment rateequals one-year U.S.Treasury Bill rate plus6%). § 1113(4); 1114(4).14 M.R.S. § 1602-CAttorney fees for“substantially prevailingparty.” § 1118. State shallbe liable for reasonablelate fee. 5 M.R.S. § 1554OTHER COMMENTSChapter 10 does not apply tocontracts entered into by theDepartment of Transportation. 10§ 1112THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.12
STATECITEMaryland PrivateMd. Code, RealProperty, §§ 9301 to 9- 305.Maryland PublicMd. State Fin.& Proc. §§ 15101 to 15-108,15- 226.Massachusetts PrivateMass. Gen.Laws ch. 149§ 29EOWNER TOPRIMEPRIME TOSUBWithin 7 days ofcontracted paymentdate. If nocontracted paydates, within 30 daysof issuance ofoccupancy permit orowner’s possession,whichever is earlier.§ 9-302(b)(1)30 days after thelater of (1) paymentbecomes due underprocurementcontract or (2)receipt of invoice.§ 15-103.Requests forpayment must beapproved within 15days after they aresubmitted, paymentto be made within45 days afterapproval (paymentrequired within 60total days from dateof payment request)Mass. Gen. Laws ch.149 § 29E(c)7 days after primecontractor receivespayment fromowner.§ 9-302(3)SUB TOLOWERTIERSINTEREST/FEESOTHER COMMENTS7 days aftersubcontractorreceives paymentfrom primecontractor.§ 9-302(3)Interest at the legal rate.Attorney fees onlyawarded for “bad faith”failure to pay“undisputed amounts.”§ 9-303Not applicable to contracts for theconstruction and sale of single familyresidential dwellings. § 9-305.10 days after primecontractor receivespayment fromowner. (§ 15-226)10 days aftersubcontractorreceives paymentfrom primecontractor. (§ 15226)Interest at 9% per yearfor prime. (Md. Code.Ann., State Fin. & Proc. §15-104) No provision oninterest for subs. No feesprovision.Procurement officer must act within 2days on subcontractor assertions ofnonpayment. Md. State Fin. & Proc.§ 15-226(e)Payment bycontractor andeach successivelower tier isextended by sevendays from the timeperiod applicableto the tier above.§ 29E(c)Payment bycontractor andeach successivelower tier isextended by sevendays from the timeperiod applicableto the tier above.§ 29E(c)Nothing in § 29E, butgeneral interest statuteadds 12% to judgmentsin contract actions. Noprovision for legal fees.Mass. Gen. Laws ch. 231§ 6C(f)Applies to all private projects worthover 3,000,000, except forconstruction of not more than 4dwelling units. § 29E(a)A non-paid contractor has an absoluteright to stop work (subject to contractnotice provisions) 30 days afterpayment is due, unless there is a goodfaith dispute as to whether payment isowing. § 29E(f)THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.13
OWNER TOPRIMEPRIME TOSUBSTATECITEMassachusetts PublicMGL c. 30§§ 39F, 39G,39K; cf.Chapter 29§ 29C (promptpayment bygovernment ingeneral).Progress payments15 or 30 days afterinvoice dependingon which agency (30days in the case ofthe commonwealth,including localhousing authorities.15 days for allothers). Mass. Gen.Laws ch. 30 § 39K,Progress paymentsdue “Forthwithafter . receiv[ing]payment”; finalpayment to "filedsubcontractors" 65days aftersubstantialcompletion of thatsub’s work. Mass.Gen. Laws ch. 30§§ 39F(a) and (b)Michigan PrivateNonen/aMichigan PublicM.C.L.A.§§ 125.1561 sota PrivateMinn. Stat.§ 337.10.Minn. Stat.§ 326.02Later of 30 daysafter owner agentapproves invoice, or15 days afteragency’s receipt ofpublic funds fromanother agency.Mich. Comp. Laws §125.1562(3)Monthly progresspayments unlesscontract statesotherwise.§ 337.10(4)SUB TOLOWERTIERSINTEREST/FEESOTHER COMMENTSNo provision.Federal Reserve“rediscount rate” plus 3%for prime to be proratedto affected subs.M.G.L.A. 30§ 39K. Public workspayment bond statuteprovides legal fees forsuccessful claimants.Awarding authority must act onsubcontractor assertions ofnonpayment; direct payment to sub is aremedy. M.G.L.A. 30 § 39F.n/an/an/aNo provisionNo provisionPrime may charge“reasonable interest”. Noattorney fees provision.Mich. Comp. Laws §125.1562(4)Within 10 daysafter primecontractor receivespayment fromowner. § 337.10(3)Within 10 daysafter receipt ofpayment by uppertier contractor.§ 337.10(3)Interest at 1.5% permonth. Attorney fees for“party requestingpayment who prevails ina civil action to collect.”§ 337.10(3)Prime or sub may suspend work undercontract until undisputed payment isreceived. § 337.10(3)Inapplicable to associated professionalcontracts (including architecture,professional engineering, landsurveying, landscape architecture,professional geoscience, or interiordesign services)(Minn. Stat. § 326.02 )THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.14
STATECITEMinnesota PublicMinn. Stat.§§ 15.71-74;16A.124 16A.1245;137.36Mississippi PrivateMiss. Code.§§ 87-7-3, 877-5OWNER TOPRIMEPRIME TOSUBMonthly payments,unless otherwiseagreed to.§ 15.72(1). Within30 days followingthe receipt of theinvoice for services.§ 16A.124(3). Forlocal governments,35 or 45 days afterinvoice or receipt ofservice whichever islater unlessotherwise agreed.§ 471.425(2)Final payment 30days after theearliest of: projectcompletion orsubstantialcompletionaccording tocontract; except inrenovations, whenthe ownerbeneficially uses oroccupies theproperty; or uponcertification ofcompletion by anarchitect or engineer§§ 87-7-3(b)Within 10 days ofthe primecontractor's receiptof payment fromthe state.§ 16A.1245;Same for contractswith localgovernment.§ 471.425(4);137.3615 days afterreceipt of paymentby the contractoror the upper-tiersubcontractor§§ 87-7-5SUB TOLOWERTIERSINTEREST/FEESNo provisionNo interest penalties forcontractors under aconstruction contractwith state agency§ 16A.124(5)(e),1.5% per month on localgovernment contracts.§ 471.425(4).Prevailing subcontractormay collect attorney fees.§ 16A.124515 days afterreceipt of paymentby the contractoror the upper-tiersubcontractor§§ 87-7-5Interest at 1% per monthfor prime. Penalty of0.5% per day up to 15%for subs. No feesprovision. §§ 87-7-3, 877-5OTHER COMMENTSPayments must be made according tothe terms of the contract. §§ 87-7-3THIS DOCUMENT IS NOT WARRANTED FOR ACCURACY AND IS NOT LEGAL ADVICE.15
OWNER TOPRIMEPRIME TOSUBSTATECITEMississippi PublicMiss. Code§§ 31-5-25, 315-27.Progress paymentsas agreed; finalpayment 45 daysafter substantialcompletion. Miss.Code Ann. § 31-525(1)15 days after primecontractor receivespayment fromowner. Miss. CodeAnn. § 31-5-27Missouri PrivateRev. Mo. Stat.§ 431.180. §436.336As agreed.§ 431.180(1).Missouri PublicRev. Mo. Stat.§ 34.057.Progress payments30 days after thelatter of (a) date ofdelivery of material,or performance; (b)date of invoicedelivery; (c) datecontractor approvesowner’s estimate.Final payment is duewithin 30 days ofdue date as definedin statute. Mo. Rev.Stat. § 34.057(1)(1),Mo. Rev. Stat. §34.057(1)(8)SUB TOLOWERTIERSINTEREST/FEESNo provisionInterest at 1% per monthfor prime. Penalty of0.5% per day up to 15%for subs. No feesprovision. Miss. CodeAnn. §§ 31-5-25(1)(b),31-5-27As agreed.§ 431.180(1).As agreed.431.180(1).15 days after primecontractor receivespayment fromowner. Mo. Rev.Stat. § 34.057(1)(7)15 days aftersubcontractorreceives paymentfrom primecontractor. Mo.Rev. Stat. §34.057(1)(7)Court “may” award “upto” 1.5% interest permonth and attorney feesto prevailing party.§431.180(2)Interest at 1.5% permonth if payment “notwithheld in good faith forreasonable cause”. Court“may, in its discretion”aw
Arkansas - Private : None n/a: Arkansas - Public : Ark. Code § 19- 4-1411. Maximum of 15 working days after invoice, excluding time of transmittal from one party to another. Ark. Code § 19-4-1411(a) No provision 8% per annum. Ark. Code § 19-4-1411(a)(3). No fees provision. California - No later than 7 30 days after Private Cal Bus & Prof .
