# Alabama — Construction prompt payment act deadlines by US state — owner-to-contractor and contractor-to-subcontractor payment windows, retention release deadlines, and late-payment interest rates

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: appears in the quote below)_
- **Owner-to-GC payment deadline (days):** 30 _(verified: appears in the quote below)_
- **GC-to-sub flow-down deadline (days):** 7 _(verified: appears in the quote below)_
- **Late-payment interest rate:** 1% per month _(verified: appears in the quote below)_
- **Project types covered:** both _(verified: appears in the quote below)_
- **Attorney fees recoverable:** yes _(verified: appears in the quote below)_
- **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: appears in the quote below)_

## 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.

## Source

- https://www.levelset.com/prompt-payment/alabama-prompt-payment-faqs/

Last verified: 2026-08-15. Review by: 2027-08-15.
Part of [Construction prompt payment act deadlines by US state — owner-to-contractor and contractor-to-subcontractor payment windows, retention release deadlines, and late-payment interest rates](https://referencesource.org/construction-prompt-payment-deadlines-by-state/).