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

In Kentucky, an owner pays a contractor within 30 business days after receiving a timely, properly completed, undisputed request for payment, a contractor pays its subcontractors undisputed amounts within 15 business days of being paid, and late amounts carry 12% a year interest, though the law excludes residential construction. The law applies to public construction and to private construction other than residential construction, for contracts entered into after June 26, 2007. If payment has not arrived 25 business days after a request, the contractor must notify the owner by certified mail and give the date interest begins, and interest on a late owner payment starts on the thirty-first business day. Retainage is capped at 10% until the project is 50% complete and 5% of the total after 51%, and must be released within 30 days after substantial completion less 200% of the estimated cost of unfinished work. A court or arbitrator must award costs and reasonable attorney’s fees to the prevailing party if the losing party acted in bad faith. A written contract can set its own payment terms where the statute allows. This is KRS 371.400, 371.405, 371.410, 371.415, 371.425.

WhatKentucky
Payment deadlineOwner pays within 30 business days; 12% a year interest
Who this coversPrivate construction, not only public works

What the statute says

“… all contracts for construction shall provide that payment of amounts due a contractor from a contracting entity, except retainage, shall be made within thirty (30) business days after the contracting entity receives a timely, properly completed, undisputed request for payment …”

Quoted word for word from the section’s text.

Source

KRS 371.400, 371.405, 371.410, 371.415, 371.425

Read the statute in the Kentucky Revised Statutes (Kentucky General Assembly): apps.legislature.ky.gov.

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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