What does New Jersey’s prompt payment law require on private construction?
In New Jersey, an owner, private or public, must pay a prime contractor’s approved billing within 30 calendar days after the billing date (a billing is deemed approved 20 days after the owner receives it unless the owner gives a written statement of the amount withheld and why), a contractor must pay a subcontractor within 10 calendar days after receiving payment for its work, and a late payment bears interest at the prime rate plus 1%. Interest runs from the day after the required payment date until the day the payment check is drawn. After seven calendar days’ written notice, an unpaid contractor or subcontractor that was not given a written statement of the amount withheld and the reason, and whose payer is not making a good faith effort to resolve it, may suspend work without penalty until it is paid. Contracts must allow payment disputes to be submitted to alternative dispute resolution, and in a civil action to collect these payments the prevailing party is awarded reasonable costs and attorney fees. The act does not restrict any other right or remedy of a resident homeowner or purchaser of the property being improved. A written contract can set its own payment terms where the statute allows. This is N.J.S.A. 2A:30A-1, 2A:30A-2.
| What | New Jersey |
|---|---|
| Payment deadline | Owner pays 30 days after billing; subs in 10 days |
| Who this covers | Private construction, not only public works |
What the statute says
“… the owner shall pay the amount due to the prime contractor for each periodic payment, final payment or retainage monies not more than 30 calendar days after the billing date …”
Quoted word for word from the section’s text.
Source
Read the statute in the New Jersey Statutes (New Jersey Legislature): njleg.state.nj.us.
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.
Guides on this rule
- Prompt Payment Laws by State for Private Construction — How many days an owner has to pay a contractor on private construction, in each of the 36 jurisdictions with a prompt payment statute.
Compare this rule in every state
More New Jersey rules
- Does a landlord have to pay interest on a security deposit in New Jersey?
- How long does a landlord have to return a security deposit in New Jersey?
- How much can a landlord charge for a security deposit in New Jersey?
- How many days does a tenant get to pay late rent in New Jersey?
- How much notice does a landlord have to give before raising the rent in New Jersey?
- How much notice must a landlord give to end a tenancy in New Jersey?
- Is there a grace period for paying rent in New Jersey?
- How much can a landlord charge for a rental application fee in New Jersey?
- Can a landlord change the locks to force a tenant out in New Jersey?
- Does a landlord need a reason to evict a tenant in New Jersey?
- How long does a tenant have to respond to an eviction case in New Jersey?
- What are squatters’ rights in New Jersey?
- What are the steps to evict a tenant for unpaid rent in New Jersey?
- Can a landlord refuse a Section 8 voucher in New Jersey?
- Can a landlord retaliate against a tenant for complaining in New Jersey?
- Can a tenant withhold rent for repairs in New Jersey?
- Can a domestic violence victim end a lease early in New Jersey?
- What can a landlord do with a tenant’s belongings left behind in New Jersey?
- Do HVAC contractors need a license in New Jersey?
- Do you need a general contractor license in New Jersey?
- Do you need a license to do electrical work in New Jersey?
- Do you need a license to work as a plumber in New Jersey?
- Does a home improvement contractor need a license or registration in New Jersey?
- How does joint tenancy with right of survivorship work in New Jersey?
- What is the deadline to file a mechanic’s lien in New Jersey?
- Does a home seller have to disclose the property’s condition in New Jersey?
- What is the real estate transfer tax in New Jersey?
- How long does a homeowner have to cancel a home improvement contract in New Jersey?
- Do contractors charge sales tax in New Jersey?
- Is a capital improvement exempt from sales tax in New Jersey?
- Is appliance repair taxable in New Jersey?
- Is contractor labor taxable in New Jersey?
- Every New Jersey rule on one page
The same question in other states
- Alabama
- Arizona
- California
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Illinois
- Kansas
- Kentucky