What does Georgia’s prompt payment law require on private construction?

In Georgia, unless the contract sets other terms, an owner pays a contractor within 15 days of receiving a payment request, a contractor pays a subcontractor within ten days of being paid, and a late payment carries interest of 1% a month if the payer was told of the interest provision when payment was requested. The chapter does not apply to improvements to real property intended for residential purposes consisting of 12 or fewer residential units. Owners, contractors and subcontractors may agree by contract to different interest rates and payment periods, but the statutory interest rate applies to a willful breach of the contract’s payment terms. Accepting a progress or final payment releases all claims for interest on that payment. The chapter covers private owners and government owners, except counties under 10,000 and municipalities under 2,500 in population. A written contract can set its own payment terms where the statute allows. This is O.C.G.A. §§ 13-11-2, 13-11-4, 13-11-7, 13-11-10.

WhatGeorgia
Payment deadlineOwner 15 days; sub 10 days after paid; 1% a month
Who this coversPrivate construction, not only public works

What the statute says

“… the owner shall pay the contractor within 15 days of receipt by the owner or the owner’s representative of any payment request based upon work completed or service provided under the contract …”

Quoted word for word from the section’s text.

Source

O.C.G.A. §§ 13-11-2, 13-11-4, 13-11-7, 13-11-10

Read the statute in the Official Code of Georgia (Georgia General Assembly): legis.ga.gov.

The linked sections open Justia’s free copy of the code, because the state’s own site has no stable address for each section.

Checked against the statute on November 15, 2026.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

A contractor on Seayora keeps every job’s dates, its estimate, its invoices and its payments in one record, so the date work was last performed, the date each invoice went out and the amount still owed are on file when a lien or payment deadline is counted.

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