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

In Minnesota, a prime contractor and every subcontractor pay their subcontractors and suppliers undisputed amounts within ten days of being paid, late undisputed amounts carry 1.5% a month interest, and unless the contract says otherwise an owner makes progress payments monthly as the work progresses. The minimum monthly interest penalty on an unpaid balance of $100 or more is $10, and a party who wins a civil action to collect the interest must be awarded its costs and disbursements, including attorney fees. If an undisputed payment is not received within ten days, a contractor or subcontractor of any tier may suspend work until it is received. Retainage may not exceed five percent, the owner must release it no later than 60 days after substantial completion, and a contractor must pay remaining retainage to its subcontractors within ten days after receiving it; these retainage and progress payment rules do not apply to public agencies. The statute sets no fixed number of days for an owner to pay a contractor. A written contract can set its own payment terms where the statute allows. This is Minn. Stat. §§ 337.10, 337.01.

WhatMinnesota
Payment deadlineSubs paid within 10 days; 1.5% a month interest
Who this coversPrivate construction, not only public works

What the statute says

“A building and construction contract shall be deemed to require the prime contractor and all subcontractors to promptly pay any subcontractor or material supplier contract within ten days of receipt by the party responsible for payment …”

Quoted word for word from the section’s text.

Source

Minn. Stat. §§ 337.10, 337.01

Read the statute in the Minnesota Statutes (Office of the Revisor of Statutes): revisor.mn.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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