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.

WhatNew Jersey
Payment deadlineOwner pays 30 days after billing; subs in 10 days
Who this coversPrivate 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

N.J.S.A. 2A:30A-1, 2A:30A-2

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

Compare this rule in every state

More New Jersey rules

The same question in other states

Related