# Arizona — 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 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: appears in the quote below)_
- **Owner-to-GC payment deadline (days):** 7 _(verified: appears in the quote below)_
- **GC-to-sub flow-down deadline (days):** 7 _(verified: appears in the quote below)_
- **Late-payment interest rate:** 1.5% 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:** Ariz. Rev. Stat. §32-1181 et seq. (private); Ariz. Rev. Stat. §§34-221, 41-2576, 41-2577, and 28-6924 (public) _(verified: appears in the quote below)_

## 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.

## Source

- https://www.levelset.com/prompt-payment/arizona-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/).