Arizona
For Arizona, owner-to-gc payment deadline (days) is 7; gc-to-sub flow-down deadline (days) is 7; late-payment interest rate is 1.5% per month; project types covered is both; attorney fees recoverable is yes, verified against its source on 2026-08-15.
- State
- Arizona verified
- Owner-to-GC payment deadline (days)
- 7 verified
- GC-to-sub flow-down deadline (days)
- 7 verified
- Late-payment interest rate
- 1.5% per month verified
- Project types covered
- both verified
- Attorney fees recoverable
- yes verified
- Statutory citation
- Ariz. Rev. Stat. §32-1181 et seq. (private); Ariz. Rev. Stat. §§34-221, 41-2576, 41-2577, and 28-6924 (public) verified
What the source says
Projects Covered by Prompt Payment in Arizona The state of Arizona regulates prompt payment on both private and public construction projects. Private Projects Private projects in Arizona are governed by <https://www.levelset.com/prompt-payment/arizona-prompt-payment-faqs/#faq-item-321129-definitions-applicability> Ariz. Rev. Stat. §32-1181 et seq . These deadlines for payment and interest rates will act as default rules, in case the contract doesn’t address the issue. Payment Deadlines For Private Projects Once a prime contractor has submitted a valid payment request, the owner will have 14 days from receipt to approve or deny the request. After the pay request is approved, the owner will have 7 days to send payment to the prime contractor. These terms can be modified within the contract between the parties. Upon receipt of payment, prime contractors have 7 days to pay their subs and suppliers. Payments from subs to sub-subcontractors also must be paid within 7 days of receipt of funds. Penalties For Late Payment On Private Projects The statute sets forth specific justifiable <https://www.levelset.com/prompt-payment/arizona-prompt-payment-faqs/#faq-item-are-there-reasons-for-which-payment-may-be-withheld-past-the-general-deadline> reasons to withhold payment . However, if none of these apply, any late or wrongfully withheld payments will accrue interest at a rate of 1.5% per month.
— levelset.com, retrieved 2026-08-15
Source
- levelset.comhttps://www.levelset.com/prompt-payment/arizona-prompt-payment-faqs/