Alabama
For Alabama, owner-to-gc payment deadline (days) is 30; gc-to-sub flow-down deadline (days) is 7; late-payment interest rate is 1% per month; project types covered is both; attorney fees recoverable is yes, verified against its source on 2026-08-15.
- State
- Alabama verified
- Owner-to-GC payment deadline (days)
- 30 verified
- GC-to-sub flow-down deadline (days)
- 7 verified
- Late-payment interest rate
- 1% per month verified
- Project types covered
- both verified
- Attorney fees recoverable
- yes verified
- Statutory citation
- Ala. Code §§8-29-1 to 8-29-8 (private); Ala. Code §41-16-3 (state public); Ala. Code §39-2-12 (local public) verified
What the source says
Projects Covered by Prompt Payment in Alabama The state of Alabama regulates prompt payment on both private and public construction projects. Private Projects Private projects in Alabama are governed by <https://www.levelset.com/prompt-payment/alabama-prompt-payment-faqs/#faq-item-8291-definitions> Ala. Code §§8-29-1 to 8-29-8. These statutes regulate payment on all private construction projects except residential home builder projects, residential projects of 16 units or fewer, and contracts that are under $10,000. For all other private projects within the state these deadlines for payment will act as default rules, in case the contract doesn’t address the issue. Payment Deadlines for Private Projects Once a prime contractor has performed in accordance with their contract, they can submit a pay application to the owner. Upon receipt, the owner has 30 days to release payment to the prime contractor. In turn, when the contractor receives payment, they have 7 days to make payment to their subs and suppliers on the project. Also, the same 7-day turnaround applies to all other payments down the chain. Late Payment Penalties for Private Projects There are certain <https://www.levelset.com/prompt-payment/alabama-prompt-payment-faqs/#faq-item-are-there-reasons-for-which-payment-may-be-withheld-past-the-general-deadline> reasons that a party may withhold payment , if so then the paying party may withhold up to 2 times the amount in dispute. If, however, payment is late or wrongfully withheld, the unpaid amount will begin to accrue interest at a rate of 1% per month.
— levelset.com, retrieved 2026-08-15
Source
- levelset.comhttps://www.levelset.com/prompt-payment/alabama-prompt-payment-faqs/