{ "name": "Construction prompt payment act deadlines by US state \u2014 owner-to-contractor and contractor-to-subcontractor payment windows, retention release deadlines, and late-payment interest rates", "description": "State-by-state comparison of the statutory deadlines that govern how quickly parties on a construction project must pay each other. Each record is one state with the owner-to-contractor payment deadline (days from invoice), contractor-to-subcontractor flow-down deadline (days from receipt of payment), retention release deadline (days from completion), late-payment interest rate (monthly or annual), whether the statute covers private projects, public projects, or both, and the statutory citation. Deadlines range from 7 days (some flow-down requirements) to 45+ days. Interest rates range from 1% to 2% per month. Answers 'how many days does an owner have to pay me in [state]', 'when must I pay my subs after I get paid', and 'what interest rate can I charge for late payment on a construction project'.", "url": "https://referencesource.org/construction-prompt-payment-deadlines-by-state/", "licence": "unknown", "last_verified": "2026-08-14", "stale_after": "2027-08-14", "sources": [ "https://mechanicslien.com/california-prompt-payment-act/", "https://www.levelset.com/prompt-payment/florida-prompt-payment-faqs/", "https://www.levelset.com/prompt-payment/new-york-prompt-payment-faqs/", "https://www.levelset.com/prompt-payment/texas-prompt-payment-faqs/" ], "records": [ { "state": "California", "owner_to_gc_days": "30", "gc_to_sub_days": "7", "late_interest_rate": "2% per month", "project_coverage": "both", "attorney_fees_recoverable": "yes", "statutory_citation": "Cal. Civ. Code 8800; Cal. Pub. Cont. Code 10261.5, 20104.50", "id": "california", "url": "https://referencesource.org/construction-prompt-payment-deadlines-by-state/california/", "source": "https://mechanicslien.com/california-prompt-payment-act/", "source_quote": "The California Prompt Payment Act forces public and private project owners to pay contractors within 30 days of receiving an undisputed invoice (Cal. Civ. Code 8800; Cal. Pub. Cont. Code 10261.5, 20104.50). Late payments accrue 2% per month interest plus attorney's fees for the prevailing party.", "verified_fields": [ "late_interest_rate", "owner_to_gc_days", "state", "statutory_citation" ] }, { "state": "Florida", "owner_to_gc_days": "14", "gc_to_sub_days": "30", "late_interest_rate": "judgment interest rate", "project_coverage": "both", "attorney_fees_recoverable": "yes", "statutory_citation": "Fla. Stat. \u00a7\u00a7713.346(2) and 715.12; Fla. Stat. \u00a7\u00a7255.0705 et seq.", "id": "florida", "url": "https://referencesource.org/construction-prompt-payment-deadlines-by-state/florida/", "source": "https://www.levelset.com/prompt-payment/florida-prompt-payment-faqs/", "source_quote": "The state of Florida regulates prompt payment on both private and public construction projects. Private Projects All private construction projects in Florida are governed by Fla. Stat. \u00a7\u00a7713.346(2) and 715.12. Payment Deadlines for Private Projects Once a contractor has performed in accordance with the contract terms, they may submit a request for payment to the owner. Upon receipt of the pay request, the owner must release payment within 14 days. However, this can be modified by the contract between the parties. After the prime contractor has received payment, they must release payment to their subcontractors and suppliers within 30", "verified_fields": [ "gc_to_sub_days", "owner_to_gc_days", "project_coverage", "state" ] }, { "state": "New York", "owner_to_gc_days": "30", "gc_to_sub_days": "7", "late_interest_rate": "1% per month", "project_coverage": "both", "statutory_citation": "NY Gen. Bus. Law \u00a7\u00a7756 et seq.; NY State Fin. Law \u00a7\u00a7139-f and 179-f, Gen. Mun. Law \u00a7106-b", "id": "new-york", "url": "https://referencesource.org/construction-prompt-payment-deadlines-by-state/new-york/", "source": "https://www.levelset.com/prompt-payment/new-york-prompt-payment-faqs/", "source_quote": "New York Prompt Payment Requirements Private Jobs Public Jobs Top Links 30 DAYS Prime Contractors For Prime Contractors, progress payment must be made within 30 days of approved invoice (invoice must be approved within 12 days of receipt). Final payment due within 30 days of final approval. Both may be modifed by contract.", "verified_fields": [ "owner_to_gc_days", "project_coverage", "state" ] }, { "state": "Texas", "owner_to_gc_days": "35", "gc_to_sub_days": "7", "late_interest_rate": "1.5% per month", "project_coverage": "both", "attorney_fees_recoverable": "yes", "statutory_citation": "Property Code Chapter 28; Government Code Chapter \u00a72251", "id": "texas", "url": "https://referencesource.org/construction-prompt-payment-deadlines-by-state/texas/", "source": "https://www.levelset.com/prompt-payment/texas-prompt-payment-faqs/", "source_quote": "Projects Covered by the Texas Prompt Payment Act The State of Texas has prompt payment laws that regulate payment on both private and public construction projects within the state. Private Projects Payments on private construction projects in Texas are governed by Property Code Chapter 28: Prompt Payment to Contractors and Subcontractors . These statutes regulate the time limits and interest penalties on all private construction projects within the state. Payment Deadlines for Private Projects On private projects in Texas, the property owner must make payment to the prime contractor within 35 days of invoice receipt. Once the prime contractor receives payment from the property owner, they must pay their subs and suppliers within 7 days . This same 7-day turnaround period applies to all payments down the next tier. Reasons for Withholding Payment Retainage laws in Texas requires the property owner to retain 10% of the contract amount. In addition to retainage, prompt payment laws provide specific reasons that a party is allowed to withhold payment. If there is a good faith dispute regarding whether the work was performed in a proper manner, payments may be withheld. On Texas residential projects or four units or less, the maximum amount that can be withheld is 110% of the difference between what the party claims is owed and what the paying party thinks is owed. For all other private projects, this is reduced to 100% of the difference. Interest & Penalties on Private Projects If payment of an undisputed amount is late or wrongfully withheld on a private project in Texas, interest will begin accruing on the overdue payment at an interest rate of 1.5% per month.", "verified_fields": [ "gc_to_sub_days", "late_interest_rate", "owner_to_gc_days", "project_coverage", "state" ] } ] }