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

It depends on the state. Seayora holds a published statute for 35 states and the District of Columbia. The table below gives the figure for each, with the statute it comes from.

Payment deadline, state by state

StatePayment deadlineSource
AlabamaOwner 30 days; sub 7 days after paid; 1% a monthAla. Code §§ 8-29-3, 8-29-4, 8-29-7
ArizonaOwner pays 7 days after approval; 1.5% a monthA.R.S. §§ 32-1182, 32-1183, 32-1187, 32-1188
CaliforniaOwner 30 days after demand; sub 7 days; 2% a monthCal. Civ. Code §§ 8800, 8812; Cal. Bus. & Prof. Code § 7108.5
ConnecticutOwner 30 days after request; sub 25 days; 1% a monthConn. Gen. Stat. §§ 42-158i, 42-158j
DelawareOwner 30 days after billing period; interest at legal rate6 Del. C. §§ 3506, 3507, 3508
District of ColumbiaOwner 15 days after a pay request; 1.5% a monthD.C. Code §§ 27A-101, 27A-102, 27A-103, 27A-104, 27A-105
FloridaInterest from 14 days after due; s. 55.03 rate + 12%Fla. Stat. § 715.12
GeorgiaOwner 15 days; sub 10 days after paid; 1% a monthO.C.G.A. §§ 13-11-2, 13-11-4, 13-11-7, 13-11-10
HawaiiSub paid within 10 days; 1.5% a month interestHaw. Rev. Stat. § 444-25
IllinoisOwner pays 15 days after approval; 10% a year interest815 ILCS 603/5, 603/10, 603/15, 603/20
KansasOwner pays within 30 days; 18% a year interestK.S.A. 16-1801, 16-1803, 16-1804, 16-1805, 16-1806, 16-1807
KentuckyOwner pays within 30 business days; 12% a year interestKRS 371.400, 371.405, 371.410, 371.415, 371.425
LouisianaOwner pays within 35 days; 1.5% a month penaltyLa. R.S. 9:2784
MaineOwner pays within 20 days of invoice; sub within 7 days10 M.R.S. §§ 1111, 1113, 1114, 1115, 1118; 14 M.R.S. § 1602-C
MarylandOwner pays within 7 days of the contract’s due dateMd. Code, Real Prop. §§ 9-301, 9-302, 9-303, 9-304, 9-305
MassachusettsPay within 45 days of approval on $3M+ private jobsM.G.L. c. 149, § 29E
MinnesotaSubs paid within 10 days; 1.5% a month interestMinn. Stat. §§ 337.10, 337.01
MississippiSub paid within 15 days; owner 1% a month after 30 daysMiss. Code §§ 87-7-3, 87-7-5
MissouriPay on the contract’s schedule; up to 1.5% a monthMo. Rev. Stat. §§ 431.180, 436.300, 436.303, 436.324, 436.333, 436.336
MontanaPaid 7 days after approval; subs in 7 days; 1.5% a monthMont. Code Ann. §§ 28-2-2101, 28-2-2103, 28-2-2104, 28-2-2107, 28-2-2115
NebraskaOwner pays in 30 days; subs in 10 days; 1% a monthNeb. Rev. Stat. §§ 45-1202, 45-1203, 45-1204, 45-1205, 45-1207, 45-1208
NevadaOwner pays in 21 days; subs within 10 days of paymentNRS 624.440, 624.609, 624.610, 624.620, 624.622, 624.624, 624.630
New JerseyOwner pays 30 days after billing; subs in 10 daysN.J.S.A. 2A:30A-1, 2A:30A-2
New MexicoOwner pays in 21 days; subs in 7 days; 1.5% a monthN.M. Stat. Ann. §§ 57-28-2, 57-28-3, 57-28-5, 57-28-11
New YorkOwner pays 30 days after approval; subs in 7 daysN.Y. Gen. Bus. Law §§ 756, 756-a, 756-b, 757
North CarolinaSubs paid within 7 days; 1% a month after thatN.C. Gen. Stat. §§ 22C-1, 22C-2, 22C-3, 22C-4, 22C-5, 22C-6
OhioSubs paid within 10 days; 18% a year after thatOhio Rev. Code § 4113.61
OklahomaOwner pays in 28 days if unspecified; subs in 10 days15 O.S. §§ 820, 821
OregonOwner pays in 14 days; subs in 7 days; 1.5% a monthORS 701.620, 701.625, 701.630, 701.635, 701.645
PennsylvaniaOwner pays in 20 days; subs in 14 days; 1% a month73 P.S. §§ 502, 503, 505, 506, 507, 509, 512
South CarolinaOwner pays in 21 days; sub in 7 days; 1% a monthS.C. Code §§ 29-6-30, 29-6-50, 29-6-60
TennesseeOwner pays within 30 days of an application; 1.5% a monthTenn. Code §§ 66-34-202, 66-34-302, 66-34-601, 66-34-702
TexasOwner pays within 35 days; sub within 7; 1.5% a monthTex. Prop. Code §§ 28.001, 28.002, 28.003, 28.004, 28.006, 28.008
UtahSubcontractor paid within 30 days; 1% a monthUtah Code §§ 58-55-602, 58-55-603, 13-8-5
VermontOwner pays within 20 days; sub within 7 days9 V.S.A. §§ 4001, 4002, 4003, 4005, 4007, 4009
VirginiaOwner pays within 60 days; sub within 7 days of paymentVa. Code §§ 11-4.6, 2.2-4355

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.

Only states where Seayora holds a published statute appear above. Where no statute is recorded, no figure is shown rather than a guess.

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

In California, unless agreed otherwise in writing, an owner pays a direct contractor an undisputed progress payment within 30 days after a notice demanding payment, a contractor pays a subcontractor within seven days after receiving each progress payment, and a late payment carries a penalty of 2% a month. In a good faith dispute, the owner or contractor may withhold no more than 150 percent of the disputed amount. An owner that withholds a retention must pay it to the direct contractor within 45 days after completion of the work of improvement. The subcontractor rule applies to all private works of improvement and to public works except where Public Contract Code section 10262 applies. In an action to collect an amount wrongfully withheld, the prevailing party recovers costs and a reasonable attorney’s fee. A written contract can set its own payment terms where the statute allows. This is Cal. Civ. Code §§ 8800, 8812; Cal. Bus. & Prof. Code § 7108.5.

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

In Texas, an owner must pay a contractor’s written payment request within 35 days of receiving it, a contractor must pay each subcontractor its share within 7 days of being paid, and an unpaid amount bears interest of 1.5% a month. The chapter covers private owners only, since "owner" excludes a governmental entity. Interest starts the day after the payment becomes due. In a good faith dispute under a contract for a detached single-family home, duplex, triplex or quadruplex, the disputing party may withhold no more than 110 percent of the difference between the amounts each side claims. A written contract for a single-family residence may let the owner pay on a date before the 61st day after receiving the payment request, and any other attempted waiver of the chapter is void. If the owner’s lender fails to disburse loan proceeds within 35 days after the owner received the request, the owner’s deadline becomes the fifth day after the owner receives the loan proceeds. A written contract can set its own payment terms where the statute allows. This is Tex. Prop. Code §§ 28.001, 28.002, 28.003, 28.004, 28.006, 28.008.

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

In Florida, on a written contract to improve real property that supports a construction lien, an owner pays when the contract makes a payment due and the contractor has sent a written request, a contractor pays a subcontractor once it has been paid for that work, and a payment not made within 14 days after it is due bears interest at the s. 55.03 rate plus 12% a year. Payment is also conditioned on the payee furnishing the affidavits or waivers required for the owner to make proper payments under the construction lien law. If a request for payment is incomplete or contains an error, the payer has 14 days to return it with written reasons, and interest then runs from the 14th day after it is corrected. Unless the contract says otherwise, a dispute does not let a payer withhold amounts not affected by the dispute. Where the owner withholds retainage until substantial completion, the balance is due within 14 days after substantial completion, a certificate of occupancy or possession and completion of the punchlist. A payee may not waive the right to interest before a payment is due. A written contract can set its own payment terms where the statute allows. This is Fla. Stat. § 715.12.

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

In New York, on a private construction contract of $150,000 or more, an owner must approve or disapprove an invoice within twelve business days and pay it within thirty days after approval, a contractor must pay a subcontractor within seven days after receiving good funds for that work, and a late payment bears interest at one percent a month. The prompt payment article does not cover public works, construction of an individual one-, two- or three-family home, a residential tract development of one hundred or fewer one- or two-family homes, or a residential project of 4,500 square feet or less. An owner that disapproves all or part of an invoice must issue a written statement of the items not approved, and may withhold from an interim payment only an amount sufficient to cure the listed items or, alternatively, the line-item amount in an agreed schedule of values. When payment depends on lender approval, it is due seven days after the owner receives good funds. A contractor or subcontractor that is not paid on time may suspend work after at least ten calendar days’ written notice without being in breach. A contract term setting payment terms different from the article’s, or requiring retainage above five percent of the contract sum, is void. A written contract can set its own payment terms where the statute allows. This is N.Y. Gen. Bus. Law §§ 756, 756-a, 756-b, 757.

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

In Pennsylvania, unless the contract says otherwise, an owner must pay a contractor’s interim and final invoices 20 days after the end of the billing period or 20 days after receiving the invoice, whichever is later, a contractor must pay a subcontractor 14 days after receiving payment for its work or 14 days after the subcontractor’s invoice, whichever is later, and late payments bear interest at 1% a month (for an owner, from the eighth day after the due date). The act does not apply to improvements to real property of six or fewer residential units under construction at the same time, and its provisions cannot be waived by contract unless the act allows it. An owner may withhold a reasonable amount for a deficiency item only by giving the contractor a written good-faith explanation within 14 calendar days of receiving the invoice, or the right to withhold is waived. Retainage due on final completion must be paid within 30 days after final acceptance of the work. A contractor that is not paid on time may suspend work without penalty after giving the statutory written notices, and in a proceeding to recover payment the court or arbitrator adds a penalty of 1% a month of any amount wrongfully withheld and awards the substantially prevailing party a reasonable attorney fee and expenses. A written contract can set its own payment terms where the statute allows. This is 73 P.S. §§ 502, 503, 505, 506, 507, 509, 512.

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

In Illinois, an owner pays an approved payment application within 15 calendar days of approval (an application is deemed approved 25 days after receipt unless the owner gives a written statement of what is withheld and why), a contractor pays its subcontractor within 15 calendar days of being paid, and a late payment carries 10% a year interest, though the law excludes public contracts and homes of 12 or fewer units. The Act covers contracts to design, build, alter, improve or repair Illinois real property, except contracts paid with public funds and work on single family homes or buildings of 12 or fewer units. An owner who finds part of the work not done to the contract may withhold only the reasonable value of that part. A contractor or subcontractor who is not paid may suspend work without penalty after 7 calendar days’ written notice. Retainage is capped at 10% until the contract is 50% complete and 5% after that. A written contract can set its own payment terms where the statute allows. This is 815 ILCS 603/5, 603/10, 603/15, 603/20.

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

In Ohio, a contractor must pay a subcontractor or material supplier within ten calendar days after receiving the owner’s payment for that work, and a late payment bears interest at eighteen percent a year from the eleventh day until it is paid in full. Section 4113.61 sets no deadline for the owner’s payment to the contractor. The same ten-day rule and eighteen percent interest apply down every tier of subcontractors and suppliers, to each subcontractor’s share of final retainage, and to laborers’ wages. A contractor may reduce a payment by a retainage provision in the subcontract and may withhold amounts needed to resolve disputed liens or claims. If payment is not made within thirty days after it is due, the unpaid party may sue for the amount plus interest, and the court awards the prevailing party reasonable attorney fees and court costs unless that would be inequitable. The section does not apply to construction or improvement of a single-, two- or three-family detached house, and the rights to interest, attorney fees and court costs cannot be waived by agreement. A written contract can set its own payment terms where the statute allows. This is Ohio Rev. Code § 4113.61.

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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.

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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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