Chart 2 - Comparison of Notice, Witholding and Other Provisions in Prompt Payment Legislation in the United States
State Application Statute(s) Grounds to withhold payment Notice Obligations for Withholding Payment Interest Legal Fees Provision Exclusions Pay-if-Paid/Pay-When-Paid Other Notes
Alabama Public Ala. Code §§ 41-16-3.

[Enacted or consolidated 1984; revised 1996]
Bona fide dispute over one or more of:
  1. unsatisfactory job progress;
  2. defective construction not remedied;
  3. disputed work;
  4. third party claims;
  5. failure to make timely payments to subs/suppliers; and
  6. evidence the contract cannot be completed for the unpaid balance of the contract.
Owner, contractor or subcontractor may withhold up to two times the disputed amount.
Agency to Prime: written notice of dispute within 15 days of receipt of request for payment.

Prime to Sub: written notice within 5 days from receipt of disputed request for payment.
Current statutory rate. N/A N/A N/A N/A
Private Ala. Code §§ 8-29-1 to 8-29-8.

[Enacted 1995; § 8-29-3 revised 2011]
Bona fide dispute over one or more of:
  1. unsatisfactory job progress;
  2. defective construction not remedied;
  3. disputed work;
  4. third party claims;
  5. failure to make timely payments to subs/suppliers; and
  6. evidence the contract cannot be completed for the unpaid balance of the contract.
Owner, contractor or subcontractor may withhold up to two times the disputed amount.
Agency to Prime: written notice within 15 days from receipt of disputed request for payment.

Prime to Sub: written notice within 5 days from disputed request for payment.
1% per month. The court shall award interest and reasonable fees to the prevailing party.
  1. Contracts under $10,000 or
  2. Residential projects under 16 units
  3. Contracts with local governments and the state of Alabama.
All contracts between parties must specify a date of payment. [Ala. Code 8-29-2]

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses should specify a date for payment.
N/A
Alaska Public Alaska Stat. §§ 36.90.200 -36.90.290.

[§§ 36.90.200 and 36.90.200 enacted 1990]
All or part of payment may be withheld for:
  1. unsatisfactory performance;
  2. payment request non-compliant with contract.
Within 8 working days' written notice setting out: amount to be withheld, reasons for withholding, and required actions to cure.

Contractor may withhold from the subcontractor upon notice as described above; with service of copy to the agency.
Current statutory rate. N/A N/A

Pay-if-Paid clauses enforced if explicit.

Pay-if-Paid and Pay-When-Paid clauses not distinguished.
Alaska Stat. § 36.90.210 sets out required contractual terms.

No waiver permitted of public construction contract provisions, including required contractual terms.
Private N/A
Arizona Public Ariz. Rev. Stat. §§ 34-221; 41-2576; 41-2576 to 41-2580; 28-6924 (highway)

[§ 34-221 enacted or consolidated 1989; revised 1991; 1999, 2003, 2006, 2015

§ 41-2576 enacted or consolidated 1989; revised 1991, 2000, 2005

§ 41-2577 enacted or consolidated 1989; revised 1991, 2000, 2001, 2015]
Amounts sufficient to cover reasonably expected costs of correcting deficiencies set forth in writing.


Written finding of reasons justifying retention longer than 60 days after final completion. 1% per month. N/A Separate regime exists for schools.

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
A subcontractor or supplier shall notify registrar and purchasing agency of any payment less than the approved amount.

In 2012, provision awarding reasonable fees to successful party removed.
Private Ariz. Rev. Stat. §§ 32-1129 to 32-1129.06.

[§ 32-1129 enacted or consolidated 1989; revised 2000, 2010.

§ 32-1129.02 revised 2000, 2001, 2010, 2011]
Dispute over one or more of the following:
  1. unsatisfactory job progress;
  2. defective construction not remedied;
  3. disputed work;
  4. third party claims;
  5. failure to make timely payments to subs/suppliers; and
  6. evidence the contract cannot be completed for the unpaid balance of the contract.
Prime contractors may also withhold amounts from subs for the above reasons, up to amount withheld by owner.
Owner: refusal to certify and approve billing or estimate.

Contractor/sub: written statement containing reasons within 14 days from receipt of the estimate.
1.5% per month or higher rate per contract Successful party shall be awarded reasonable fees and costs. N/A

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
If a contract stipulates a longer pay period, it must be reflected as "Notice of Extended Payment Provision" on all pages of all contract documents and specifications.
Arkansas Public Ark. Code §§ 19-4-1411; 22-9-601 to 22-9-604.

[§ 19-4-1411 enacted or consolidated 1973; revised 1977, 1979, 2001, 2003;

§§ 22-9-601 to 22-9-603 enacted or consolidated 1977; revised 1979.

§ 22-9-601 enacted or consolidated 1977; revised 1977, 2007, 2009, 2015]
No statutory grounds listed for "contested payment"; contract or common law.

For contractors required to furnish a performance bond, the agency shall retain 10% of any progress payment until 30 days after completion.
Notification and reasons within the 5 working days processing period from receipt of prime's properly prepared request for payment. 8% per year.

10% per year if contract provides for payment upon completion and payment not made within 90 days of claim.
N/A Contracts entered into by the State Highway Commission for the construction or maintenance of public highways, roads, or streets. [A.C.A. §19-4-1403]. Pay-if-Paid clauses enforced if explicit.

Pay-if-Paid and Pay-When-Paid clauses not distinguished.
No contracting around statutory payment provisions for contractors.

In 2009, performance bond holdback increased from 5% of any progress payment to 10%.
Private N/A
California Public Cal. Bus. & Prof. Code § 7108.5; Civil Code §8802; Pub. Cont. Code §§7107, 10261.5 to
10262.5, 10853.

[Pub. Cont. Code §7107 effective 1999; § 10261.5 enacted 1990].
No specific grounds stipulated by statute.

In the event of a dispute over amount due, agency may retain up to 150% of disputed amount. Retentions must be released within 60 days (125-150% of disputed amount retained) or 90 days (up to 125% of disputed amount retained) of completion.

In the event of good faith dispute over amount due, prime contractor may withhold up to 150% from subcontractor.


Any payment request not deemed a proper request must be returned within 7 days of receipt, with written reasons.
Current statutory rate.

2% per month on late payments to subcontractor.
Prevailing party shall be entitled to attorney’s fees and costs. N/A

Pay-When-Paid clauses suggest time for payment.
Waiver of any provisions dealing with release of retention not permitted.

In 2011, pay periods changed from 10 days to 7 days.
Private Cal. Bus. & Prof. Code § 7108.5; Cal. Civil Code §§ 3260-3260.1. (7/1/12, cite Civ. Code §§ 8800-8802, 8810-8822)

[Cal. Civil Code §§ 8800; 8810 effective 2011]
If bona fide dispute over amount due exists, owner may withhold up to 150% of disputed amount.

Prime contractor may withhold up to 150% from subcontractor on same grounds.
N/A 2% per month for any progress payments or retention wrongfully withheld. Prevailing party may recover reasonable fees and costs. N/A Statute prohibits enforcement of Pay-if-paid clauses as applied to mechanic's liens. Waiver of provisions dealing with release of retention not permitted.

In 2011, pay periods changed from 7 days to 10 days.

A prime contractor not paid amounts due from the owner within 35 days from the payment due date may serve a 10-day stop work order or notice upon the owner.

A copy of this notice must be served on all subcontractors having a direct contract with the prime contractor. The owner must forward a copy of the notice to its construction lender.
Colorado Public Colo. Rev. Stat. § 24-91-101 to 24-91-104; 109 to 110.

[Enacted 1979.

§ 24-91-101 revised 1992.

§ 24-91-102 and § 24-91-103 revised 2014]
Beyond "satisfactory performance", does not appear to explicitly identify grounds under which payment may be withheld.

At least 95% of the value of any work completed shall be paid until the contract is completed satisfactorily and finally accepted by the public entity.
N/A The higher of the contract rate or 15% per annum. N/A Regime does not apply to contracts for which a part of the price is to be paid for by federal funds or "some other source" with inconsistent requirements.

Partial payments not required for contracts under $150,000.


Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
N/A
Private N/A
Connecticut Public Conn. Gen. Stat. § 4a-71 to 4a-75, 49-41c

[§ 4a-71 to § 4a-73 enacted 1984; § 4a-71 revised 2005

§ 4a-74 enacted 1975; revised 2011

§ 4a-75 enacted 1949; revised 2000

§ 4a-41c enacted 1983; revised 1986]
Agency to Prime: Good faith dispute exists if goods delivered or services rendered were:
  1. of less quantity or quality than ordered or specified by contract;
  2. faulty;
  3. installed improperly; or
  4. any other reason giving cause.
Standard retainage rules for contracts which require a payment bond in the full amount; special rules for contracts with the Department of Transportation and a municipality.

Prime to Sub:
Bona fide reason for withholding.
Agency to Prime: Notice of dispute must be sent in accordance with contract, by certified mail, or personal delivery.

Prime to Sub: Written notice of reasons within 30 day pay period, with copy to government agency.
Agency to Prime: Rate equal to the monthly effective yield for the Short Term Investment Fund.

Prime to Sub: For public prime contracts valued at more than $100,000 which require payment bonds, rate is 1% per month.
Agency to Prime: N/A

Prime to Sub: If determined by court that the claimant substantially performed its work, general contractor must pay the claimant's attorney fees.
N/A

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
N/A
Private Conn. Gen. Stat. § 42-158i to 42-158r

[§ 42-158i enacted 1999; revised 2004

§ 42-158j enacted 1999; revised 2009

§ 42-158k-r effective 2004]
N/A

No contract may provide for retainage in amount that exceeds 5% of the amount of a progress payment for the life of the contract.
N/A 1% per month 10 days after receipt of notice of non-payment (accrues at the beginning on the date notice is received). Attorney's fees upon finding payment was "unreasonably withheld".
  1. Contracts under $25,000 between owner and contractor;
  2. Residential projects of 4 or less units.
Contractor must pay subcontractor within 30 days of receipt of payment.

No payment may be withheld from a subcontractor for work performed because of a dispute between the general contractor and another contractor or subcontractor.
[Conn. Gen. Stat. § 42-158j (a)(1) and (c)]
Party found to have withheld payments in bad faith will be liable for 10% damages.

If owner fails to pay contractor for labour supplied under a contract, that person has a direct right of action against the owner (limited to amount owed to the contractor by the owner for the work performed).
Delaware Public Del. Code, Title 29, § 6516(f)

[Enacted 1921; revised 2002]
Agency to Prime: May disapprove or decline to certify a billing or estimate for one or more of the following reasons:
  1. unsatisfactory job progress;
  2. defective construction not remedied;
  3. disputed work;
  4. third party claims;
  5. failure to make timely payments to subs/suppliers; and
  6. evidence the contract cannot be completed for the unpaid balance of the contract.
5% of the value of work completed by the contractor under the contract shall be retained by the public agency. Up to 60% of retainage may be released upon completion of the work. Retainage not restricted.

Contractor/Subs: Contractors or subs may also withhold amounts for the above reasons, up to amount withheld by owner.
Written finding of reasons:
  1. within 21 days for disapproval of estimate;
  2. within 10 days, for declining to certify billing.
Agency to Prime: Progress payments delayed by 21+ days and final payments delayed by 60+ days - rate not to exceed 2% above the prime interest rate set by Federal Reserve.

Payments withheld on reasonable grounds do not bear interest as long as timely notification from the agency in writing.

Contractor/Sub: Payment delayed 21+ days shall bear interest at 2% above the prime interest rate set by the Federal Reserve.
N/A N/A N/A N/A
Private Del. Code, Title 6, § 2301, 3501 to 3509

[§ 2301 date of enactment unknown; revised 2012

§ 3501 enacted 1933; revised 2004

§ 3502 - § 3505 enacted 1933; revised 1943 (date of most recent amendment unavailable)

§ 3506 enacted 1996; revised 2004

§ 3507 enacted 2002; revised 2012

§ 3508 enacted 2002; revised 2004

§ 3509 enacted 2002; revised 2004]
Retainage and good faith disputes. Written notice of amount being withheld and reasons for withholding must be provided within 7 days of the date required for payment. Interest owed at legal rate in effect at the time the obligation to pay a late payment interest penalty accrues (interest computed monthly). Reasonable attorney's fees may be awarded if determined by court that payment was withheld in bad faith. Any clause in a subcontract that makes payment by the owner a condition precedent to payment of subcontractor is void. [Del. Code. Ann. tit. 6 § 3507]

Pay-When-Paid clauses are enforceable and should specify a time for payment.
Payments to a contractor are trust funds in the hands of the contractor and must first be applied to the payment of all monies due and owing to subcontractors and suppliers.

Failure to pay in full or pro rata lawful claims of contractors who furnished labour within 30 days after receipt of moneys is prima facie evidence of violation of statute. Liability is a fine not more than $1,000 or imprisonment not more than 3 years or both.
Florida Public Fla. Stat. §§ 255.0705 et seq., 215.422

[§ 255.0705 enacted 2005

§ 215.422 enacted 1974; revised 2006]
Bona fide dispute as to payment.

Agency to Prime:
For contracts $200,000 or more, if project less than 50% complete, may withhold up to 10% of each progress payment; more than 50% complete, may withhold up to 5% of each progress payment.

Prime to Sub: If project less than 50% complete, may withhold up to 10% of each progress payment; more than 50% complete, may withhold up to 5% of each progress payment (may withhold more than 5% so long as determined on case-by-case basis and subcontractor notified in writing).

Agency to Prime: notice of dispute must be included with invoice submitted to state payment officer.

Prime to Sub: written notice of retainage for amounts greater than 5%.
1% per month. Reasonable fees and costs if court finds that payment withheld on unreasonable basis. Local governments governed by separate regime. No statutory provisions.

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
If a subcontractor is not paid within 30 days of the date due, it may file a sworn complaint with the court and an evidentiary hearing must be held upon 15 days notice to the owner. The only defences available are proof of a bonafide dispute and/or proof of material breach of contract.
Localities: §§ 218.70 et seq. FDOT: § 337.141 and year

[Localities § 218.70 enacted 1989/revised 2005

FDOT § 337.141 enacted 1970; revised 1995]
Good faith dispute as to the amount owed.

Agency to Prime: For all contracts $200,000 or more, if project less than 50% complete, may withhold up to 10% of each progress payment. If project more than 50% complete, may withhold up to 5% of each progress payment.

Prime to Sub: If project less than 50% complete, may withhold up to 10% of each progress payment. If project more than 50% complete, may withhold up to 5% of each progress payment (may withhold more than 5% so long as determined on case-by-case basis and subcontractor notified in writing).



Subcontractor must be notified in writing of the amount in dispute and actions required to cure the dispute. Greater of 1% per month or the rate specified in the contract. Action to recover amounts under the Local Government Prompt Pay Act - award court costs and reasonable attorney's fees. N/A N/A N/A
Private Fla. Stat. §§ 713.346, 715.12

[§ 713.346 enacted 1988; revised 1990

§ 715.12 enacted 1992; revised 1993]
Contract may specify right to withhold for improper pay request, bona fide dispute, material breach of contract.

Contract may specify that there is a right to withhold portion of each progress payment until project is substantially complete.
N/A Greater of statutory judgment rate or the contract rate. Does not appear to provide for payment of attorney fees. N/A No statutory provisions.

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses enforceable and should specify a time for payment.
N/A
Georgia Public Ga. Code §§ 13-11-1 to 13-11-11.

[Enacted 1994; no revisions listed]

Payment may be withheld by Owner, contractor or sub for:
  1. unsatisfactory job progress;
  2. defective construction not remedied;
  3. disputed work;
  4. third party claims;
  5. failure to make timely payments to subs/suppliers;
  6. damage caused by contractor/sub; and
  7. reasonable evidence the contract cannot be completed for the unpaid contract balance.
Reasonable retainage may be withheld by owner, and by contractor or sub up to the amount retained by owner with respect to sub's work.
N/A 1% per month or per contract.

Chargeable only if the person being charged interest has been notified at the time the request for payment was made.

Acceptance of progress payment will release all claims for interest.
Prevailing party entitled to reasonable attorney's fees. N/A

Pay-if-Paid clauses enforced if explicit.

Pay-if-Paid and Pay-When-Paid clauses not distinguished.
Legislative provisions cover both public and private contracts.
The Act does not modify remedies otherwise available by contract or statute.
Private Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. N/A
Hawaii Public HRS §§ 103-10 to
103-10.5. HB 3036

[§ 103-10 enacted in 1967; multiple amendments from 1977-2004;

§10.5 enacted in 1983; §2 amended in 2000 and 2006]
Haw. Rev. Stat. § 103-10 does not apply where delay is due to:
  1. a bona fide dispute between State or any County and the contractor concerning the services or goods contracted for;
  2. labour dispute;
  3. power or mechanical failure;
  4. fire;
  5. Acts of God; or
  6. any similar circumstances beyond the control of the State or any County.
To receive retainage or other withheld payments, subcontractor must satisfactorily complete all work, provide a properly documented final payment request and: (i) provide contractor an acceptable performance & payment bond; or (ii) meet following criteria: (a) 90 days since last work done and no claim given to contractor and surety, and (b) provide contractor an acceptable release of retainage bond in an amount of not more than 2 times the amount being retained or withheld by contractor and any other bond acceptable to contractor; or any other form of acceptable collateral.
N/A Interest at prime plus 2% for prime contractor, commencing the 30th day following receipt of invoice; subs get 1.5% per month if final payment is delayed by responsible party. N/A N/A N/A Nothing in the statute prevents the parties from negotiating additional terms and conditions to be met before a subcontractor is entitled to final payment.
Private HRS §§ 444-1 and
444-25.

[§ 444-1 enacted in 1957; multiple amendments from 1969-2000

§ 444-25 enacted in 1969; §1 amended in 1971 and §2 amended in 2012]
If a bona fide dispute exists concerning goods and services contracted for, contractor may withhold payment from subcontractor. N/A Interest at 1% per
month beginning on the 60th day following receipt of the statement by the contractor.
N/A Haw. Rev. Stat. § 444-2 exempts a number of people from the provisions of ch. 444, certain projects valued at < $1000, and certain types of public & private projects.

If payment is contingent upon receipt of funds, the contractor shall clearly state this fact in the contractor's solicitation of bids. [HRS § 444-25]

Pay-if-Paid enforced if explicit.

N/A
Idaho Public Idaho Code §67-2302.

[Last amended in 1986]
No statutory provisions; presumably, parties’ contract or common law principles will apply.

Public bodies requiring a performance or payment bond greater than 50% of the total contract amount are not permitted to exceed 5% of the total amount payable as retainage.

Contractors are not able to withhold more than 5% of the total amount payable to a subcontractor as retainage.
N/A Interest at the midterm federal rate plus 2% for prime contractor. State must pay any reasonable attorney fees to a prevailing vendor who brings “formal administrative action” or judicial proceedings to collect interest due under statute. N/A

Pay-if-Paid clauses enforced if explicit.

Pay-if-Paid and Pay-When-Paid clauses not distinguished.
N/A
Private Idaho Code Ann. § 29-115

[Last amended in 1998]
Maximum retainage that may be withheld from a contractor
or subcontractor by the owner or contractor on a private work of improvement is 5% of the
payment, unless contractor or subcontractor fails to provide a performance bond as requested by owner or contractor.

Maximum retainage amounts do not
apply to any contract for the performance of a private work of improvement to residential real
property consisting of 1-4 units occupied or to be occupied by the owner.
N/A N/A N/A N/A N/A Idaho does not appear to impose requirements on private owners as to contractors. Provisions in Code relating to retainage only. These provisions may not be waived.
Illinois Public Title 50 ILCS505/1
-505/9 (localities); Title 30 ILCS 540/0.01-540/7
(state).

[505/9 last amended in 2007]
N/A

N/A Interest at 1% per
month for prime contractors; 2% per month for subs and sub-subs.
Depends on parties’ agreement (and Illinois common law), or another applicable statute N/A N/A A State official or agency may not request any vendor or contractor to waive his rights under the Act to recover a penalty for late payment as a condition of, or inducement to enter into, any contract for goods or services.

If a Contractor fails to make payments to subcontractors and suppliers within 15 days after receipt of payment from owner, the subcontractor may file a complaint with the State official or agency. Within 15 days of receipt of the notice, the agency shall hold a hearing and make a determination. If the Contractor still fails to pay, it will be barred from entering into state construction contracts for 1 year.
Private Title 815 ILCS
603/1-603/99.

[603/99 last amended in 2007]
N/A

Owner to provide written statement of any amount withheld and reason for withholding within 25 days of receiving payment application. 10% per annum, but this interest may not be duplicative of any interest charged under the Illinois Mechanics Lien Act. Depends on parties’ agreement (and Illinois common law), or another applicable statute. Excludes projects of single family residences or multi-family residences with 12 or fewer units in a single building. Pay-if-Paid:
Unenforceable as applied to mechanics’ liens [770 ILL. COMP. STAT. 60/21€]
N/A
Indiana Public Ind. Code §§ 5-17-5-1 to 5-17-5-5, 5-16-5.5-1 to 5-16-5.5-8.

[Amendments to several sections between 1972 and 2007: § 5-17-5-1 last amended 1997; § 5-17-5-4 last amended 1996; § 5-16-5.5-1 last amended 2006; § 5-16-5.5-3.5(a) last amended 2007; § 5-16-5.5-5 last amended 1985; § 5-16-5.5-6 last amended 1972]
For state public works contracts (Title 4): if (1) prime contractor fails to materially fulfill contractual obligations; (2) agency has received claims from subcontractors / suppliers under statute; or (3) prime contractor fails to furnish satisfactory evidence showing full payment of subcontractors & suppliers for performance of contract.

For local public works contracts (Title 36) and for all other non-title 4 contracts with the state (Title 5): until contractor has paid (Title 5 has qualifier).
N/A Interest at 1% per
month which must be distributed to
subcontractors if
contractor was “unable to make timely payments”.
N/A Excludes
contracts less than
$200,000. Some highway projects are subject only to highway dept. rules. Contracts with the Indiana Department of Transportation are governed by Title 8.
Pay-if-Paid provisions unenforceable as applied to mechanics’ liens (Ind. Code § 32-28-3-18(c)). N/A
Private N/A .
Iowa Public Iowa Code §§ 573.12 and 573.14.

[Last amended in 2005]
N/A

N/A Interest rate depends on the state agency. Court may award reasonable attorney’s fees. N/A

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
N/A
Private N/A
Kansas Public Kan. Stat. §§ 75-6401 to 75-6407 and 16-1901 to 16-1908.

[In 2010, §§ 16-1902 and 16-1904 were amended and the existing sections repealed]
N/A N/A Interest at 18% per year, compounded monthly, beginning 37 days after invoice. KPPA: N/A

KFPCCA:
costs and fees for “prevailing party seeking enforcement of statutory provisions.
Highways excluded. Contractors must pay subcontractors within 7 days of receipt of payment. [K.S.A. §§ 16-1803 (f) and 16-1903 (f)]

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
KPPA (Kansas Prompt Payment Act) applies to consulting, construction and other professional and personal goods / services with state and government agencies.

KFPCCA (Kansas Fairness in Public Construction Contract Act) applies to all owners, contractors, and subcontractors who enter into a contract for public
construction.
Private Kan. Stat. 16-1801 to 16-1807.

[Enacted in 2005

§§ 16-1802 and 16-1804 amended in 2010 (repealing existing sections)

§ 16-1803 amended in 2009]
N/A N/A Interest at 18% per
year; fees for
“prevailing party.”
16-1806.
Reasonable attorney’s fees. Excludes construction of single family and multifamily residential housing of 4 units or less. Pay-if-Paid:
Unenforceable as applied to mechanics’ liens or bonds in private contracts (KAN. STAT. ANN. § 16-1803(c)).

Any provision in a contract for private construction providing that a payment from a
contractor/ subcontractor to subcontractor is contingent/ conditioned upon
receipt of payment from any other private party is no defense to a claim to enforce a mechanic’s lien or bond to secure payment of claims.


If undisputed amounts are not paid within 7 days of due date, upon 7 day notice the claimant is entitled to suspend performance until payment of principal and interest. Contract time will be extended accordingly.
Kentucky Public KRS 371.400 to
371.425: §§ 45.451 - 45.458 (prompt payment by government in general).

[Enacted in 1984

§ 45.453 amended in 1997

§ 45.454 amended in 1998]
N/A N/A Interest at 12% per
year.
KFCA: reasonable attorney’s fees if losing party is deemed to have acted in bad faith.

Ch. 45: N/A
Excludes residential construction and construction for regulated utilities.

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
N/A
Private Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. N/A
Louisiana Public La. Rev. Stat.
§§ 9:2784, 38:2191,
48:251.5 (highway).

[§ 9:2784 last amended in 1987]
N/A N/A Highway primes
entitled to legal rate of interest; other primes get no interest. Public entity subject to
mandamus to compel payment of sums due.

For prime to sub, 0.5% of the amount due per day, not to exceed 15% of the outstanding balance due.
Failure of public entity to make final payment: liable for reasonable attorney's fees.

Failure of prime to make payment: Reasonable attorney’s fees for collection of payments due; but for claims without merit, claimant subject to attorney’s fees for defense.

Department of Transportation & Development subject to specific provisions.
N/A Pay-if-Paid
Enforced If
Explicit

Pay-when-Paid Suggests
Time for Payment

La. C.C.P. Art. 423 require
contractual obligations which
depend on a suspensive
provision, an occurrence of an
uncertain event, to occur
before a right accrues.
N/A
Private N/A
Maine Public 10 M.R.S.A. § 1111 et. seq. (Me. Rev. Stat., Title 10, §§ 1111 et seq.; cf.
Title 5, §§ 1551 et seq. (prompt payment by government in general).

[Enacted in 2015]
Include unsatisfactory job progress, defective construction or
materials, disputed work and third party claims.
Notice must be given in writing within 10 days of receipt of the invoice if the invoice is incorrect or incomplete. Interest at statutory rate, plus 1% per month penalty for the prevailing party. Reasonable attorney‘s fees for substantially prevailing party. A contract term to the contrary will not prevail. Excludes highway.

Excludes contracts relating to the purchase of materials by a person who is performing work on his or her own property.
Pay-if-Paid enforced if explicit: contractor must disclose payment schedule from Owner before subcontract is agreed to or pay sub within 7 days of its invoice, notwithstanding any contrary agreement. [10 M.R.S. § 1114] Legislative provisions cover both public and private contracts.
Private Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. N/A
Maryland Public Md. State Fin. & Proc. §§ 15-101 to 15-108, 15-226.

[§§ 15-101 to 15-108 enacted or consolidated 1988

§ 15-104 amended 1993, 1996; § 15-105 amended 1996; § 15-108 amended 2000, 2005]
Agency to Prime: If the public body reasonably believes it necessary to protect the public body's interest.

Prime to Sub: If contractor / subcontractor determines subcontractor's performance under the subcontract provides reasonable grounds for withholding an additional amount.

N/A Interest at 9% per year for prime beginning the 31st day after receipt; no provision on interest for subs. Agency to Prime: Statutes silent; but if a claim is filed with the Appeals Board, the Appeals Board may award attorney's fees to the contractor if it finds that the unit personnel processing the claim acted in bad faith or without substantial justification.

Prime to Sub: N/A
N/A N/A N/A
Private Md. Code, Real
Property, §§ 9-301 to 9-304.

[§§ 9-301 to 9-303 enacted in 1989

§ 9-304 enacted in 2008]
N/A N/A Interest at the legal rate. Attorneys’ fees only
awarded for “bad faith” failure to pay
“undisputed amounts.”
Contracts for the construction and sale of a single-family residential dwelling and other types of
contracts as specified in Md. Rev. Stat. Ann. Real Property § 9-304
Pay-if-Paid clauses
enforced if explicit.

Pay-When-Paid clauses suggest
time for payment

Md. REAL PROPERTY Code Ann. § 9-113: Contingent payment clauses will not prevent collection from other sources, such as a property
owner or a contractor’s bond.
Section 2, ch. 23, Acts 2013, provides that "this Act shall be construed to apply only prospectively and may not be applied or interpreted to have any effect on or application to any construction contract awarded before the effective date of this Act [July 1, 2013]."
Massachusetts Public Mass. Gen. Laws ch. 30, §§ 39G, 39J, 39K.

[Enacted 1982 per secondary source, information on amendments not readily available]
Agency to Prime: Government may not retain more than 5% of the approved periodic payment prior to substantial completion. However, additional amounts may be retained based upon the government’s claims against the contractor. Following substantial completion the amount of retainage is reduced to 1% plus
other applicable amounts.

Prime to Sub: Amounts specified in court proceedings barring such payment amounts claimed. Contractor not forced to pay amounts withheld by the awarding authority as the estimated costs of completing the sub's incomplete or unsatisfactory work.
N/A Agency to Prime: 3% over the rate charged by the Federal Reserve Bank of Boston.

Prime to Sub: N/A
N/A N/A Pay-if-Paid enforced if explicit; Pay-when-Paid suggests time for payment.

Subcontractor may be able to state a claim for direct payment from owner. Mass Gen. Laws ch. 30, §39F
Private Mass. Gen. Laws ch. 149 § 29E(a), (c), (d) & ch. 254 § s. 2.

[Enacted 1982]
N/A N/A General interest statute adds 12% to judgments in contract actions. N/A N/A Limitations on the enforceability of conditional payment clauses.

On nearly all private projects worth over $3,000,000, “pay-if-
paid” clauses are unenforceable in all general and subcontracts (regardless of level), except where: (a) the party seeking payment has failed to perform; or (b) amounts are not received from a third person because of that person’s insolvency; and (c)
the party who wants to invoke pay-if-paid has filed a mechanic's lien before submitting its first requisition
and taken all steps necessary to maintain that lien. [Mass. Gen. Laws ch. 149, § 29E]
Owner to Prime:
The statute also mandates time sensitive approval requirements for change orders.

General interest statute adds 12% to judgments
in contract actions.
Michigan Public Mich. Comp. Laws § 125.1561; 1562; 1563, 1564

[Enacted in 1980; came into effect in 1983]
While the Michigan statutes do refer to withholding payments in relationship to retainage, beyond that, the Michigan statutes do not appear to specify additional grounds upon which payment may be withheld, so the contract will likely govern. N/A Reasonable interest on amounts past due in the next request for payment. N/A N/A

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
Statute addresses dispute resolution procedures with regard to retention of progress payments.

The Mason Contractors' Association and the American Subcontractors' Association - Southeastern Michigan Chapter have made previous efforts to pass prompt pay legislation applicable to subcontractors.
Private N/A
Minnesota Public Minn. Stat. §15.72; 16A.124; 16A.1245; 16B.01

[§ 15.72 enacted in 1980

§ 16A.124 enacted in 1980, various amendments in 1984, 1985, 1992, 1994, 1995, 1996, 1997, 2009, and 2014

§ 16A.1245 enacted in 1990

§ 16B.01 enacted in 1994; amendments in 1984, 1994, 1996, and 2014]
Agency to Prime: While the Minnesota statutes do refer to withholding payments in relationship to retainage, beyond that, the statutes do not appear to specify additional grounds upon which payment may be withheld, so the contract will likely govern.

Prime to Sub: N/A
N/A 1.5% per month. Agency to Prime
State Contracts and Prime to Sub State/Local Contracts:
mandatory for a vendor who prevails in a civil action to collect interest penalties.

Agency to Sub
Local Government Contracts: if municipality delays payment not in good faith, vendor may recover costs and attorney's fees.

N/A N/A Contracts with the Minn. Dept. of Transportation do not allow interest until 90 days after work is completed to the Dept.'s satisfaction. These rules do not apply if the delay is caused by the contractor or if the contract of over $2 million specifically provides for a different period of time in which to make the final estimate.

Private Minn. Stat. § 337.10; § 514.02

[§ 337.10 enacted in 1997; amendments in 1998, 1999, 2007, and 2009

§ 514.02 enacted in 1915; amendments in 1965, 1971, 1984, 1986, 2000, and 2007]
N/A N/A Owner to prime:
N/A

Prime to Sub:
1.5% per month; minimum interest on unpaid balance greater than $100 is $10.
Owner to Prime:
N/A

Prime to Sub:
Mandatory for a subcontractor that prevails in a civil action to collect interest penalties.

A person injured by failure to use proceeds to pay for labour, skills, materials, and machinery contributed to the improvement as required may recover reasonable attorney's fees in action for damages.
N/A Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.

Provisions requiring a contractor, sub, or
supplier to waive the right to a mechanic’s lien or to a claim against a payment bond before the person has been paid for the labour or materials or both
that the person furnished are
void and unenforceable. [Minn. Stat. § 337.10 (3)]
Choice of law/venue provision in favour of a state other than Minnesota is unenforceable.
Mississippi Public Miss. Code Ann. §§ 31-5-25 & 31-25-27

§§ 31-5-25 originally from 1942; enacted in 1972; amendments in 1985, 1994, 2002, and 2006

§ 31-25-27 enacted in 1972; amendment in 1985]
Agency to Prime: N/A

Prime to Sub: On reasonable cause.
N/A Agency to Prime: 1% per month if not paid within 45 calendar days that payment is due and payable; no interest charged if paid within 45 days, but interest charged for full late period if beyond 45 days.

Prime to Sub: 0.5% per day of delinquency from expiration of 15 day period until fully paid, not to exceed 15%, absent reasonable cause for delay.
Agency to Prime: N/A

Prime to Sub: In discretion of trial judge for reasonable amount in actions on a public works payment bond.
N/A N/A Owner to Prime:
No exception for disputed amounts. Statutory prejudgment interest applies to qualifying amounts ultimately determined to be due and payable, even though legitimately contested.

Prime to Sub: Contractors must submit monthly certification to project engineer or architect indicating payments to subcontractors on prior payment request.
Private Miss. Code Ann.§§ 87-7-3 & 87-7-5.

[§ 31-5-25 originally from 1942; enacted in 1972; amendments in 1985, 1994, 2002, and 2006

§ 31-25-27 enacted in 1972; amendment in 1985]
Owner to Prime: N/A

Prime to Sub: On reasonable cause.
N/A Owner to Prime: 1% per month from due date until fully paid if payment not made within 30 calendar days; no interest charged if paid within 30 days but if paid beyond 30 days, interest for full late period applies.

Prime to Sub: 0.5% per day calculated from expiration of 15-day period, not to exceed 15% of outstanding balance due.
Likely governed by common law or other statute.

For example, Mississippi's Construction Industry Arbitration Act authorizes arbitrators to award attorney's fees and costs to a prevailing party.
N/A

Pay-if-Paid enforced if explicit.

Pay-When-Paid suggests time for payment.
N/A
Missouri Public Mo. Rev. Stat. §§ 34.057.1; 34.057.4; 34.057.5; 34.057.6

[Enacted 1990; amendment in 2014]
Includes, but is not limited to: liquidated damages; unsatisfactory job progress; defective construction work; etc. N/A 1.5% per month from expiration of the 30-day period until fully paid. Awarded to prevailing party if payment was not withheld in good faith for reasonable cause. If a claim is brought or defense asserted that is frivolous and in bad faith, such party will be required to pay the other party costs, reasonable expenses and reasonable attorney fees. N/A N/A

An agreement to waive lien rights in anticipation of or in consideration for the awarding of a contract or subcontract is
void and against public policy. [Mo. Rev. Stat. § 429.005]
Private Mo. Rev. Stat. § 431.180 & §§ 436.300, 303, 306, 309, 312, 315, 318, 321, 324, 327, 330, 333, 336.

[§ 431.180 enacted in 1995; amended in 1999

§§ 436.300, 303, 306, 309, 312, 315, 318, 321, 324, 327, 330, 333, 336 enacted in 2002]
N/A N/A 1.5% per month from date payment was due. May also be applied to retainage if withheld in violation of Mo. Rev. Stat. §§436.300 to 436.336 at the same rate. Failure to pay in accordance with the contract's terms may result in an award of reasonable attorney's fees. Attorney's fees may be awarded to the prevailing party in an action brought to enforce retainage provisions. N/A Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.

A “pay if paid clause” will not negate a mechanic’s lien claim. [Mo. Rev. Stat. § 431.183]
Montana Public Mont. Code
§§ 17-8-241 to
17-8-244 (public)

Mont. Code Ann. §§ 28-2-2101 - 2107, 2110, 2111, 2115-2117.

[Mont. Code Ann. §§ 28-2-2101 - 2107, 2110, 2111, 2115-2117 all enacted 1999 except 2110 enacted 2001, amended 2005; 2111, 2115 - 2117 enacted 2003.

§§ 28-2-2101 amended 2003; 2102, 2103 amended 2003; 2104 amended 2005, 2009; 2105, 2106, 2107 amended 2001]
Payment may be withheld due to:
  1. unsatisfactory job progress;
  2. failure to remedy defective construction work or materials;
  3. disputed work or materials;
  4. failure to comply with material provisions of the construction contract;
  5. failure of a contractor to make timely payment for claims;
  6. damage to the owner; or
  7. existence of reasonable evidence that the construction cannot be completed for the unpaid balance of the contract sum.
Within 21 days of receipt of payment request, owner must provide written statement containing specific items that are ot being approved.

An owner must notify the subcontractor of a progress payment or final payment made to the general contractor upon the written request of a subcontractor who has not been paid for work.
1.5% per month if delayed by more than 30 days. Prevailing party in a civil action to enforce an obligation entitled to reasonable attorney's fees and costs. An arbitrator may award fees and costs. Excludes residential projects of less than $40,000.
Pay-if-Paid and Pay-When-Paid clauses likely unenforceable.

Performance entitles subcontractor to payment from
contractor. [Mont. Code Anno., § 28-2- 2102 (2)]

Within 7 days after a contractor receives payment from an owner, the
contractor shall pay the subcontractor. [Mont. Code Anno., § 28-2- 2103 (2) (a)]

“A construction contract may not contain provisions
requiring a [party] to waive the right to a construction lien or
… payment bond before the [party] has been paid.” [Mont. Code Anno., § 28-2-
723]
Legislative provisions cover both public and private contracts.

Remedies provided in statute are not exclusive of other remedies provided by law or contract.
Private Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. Same as above.
Nebraska Public Neb. Rev. Stat. §§ 81-2401 to 2408; Neb. Rev. Stat. §§ 45-1201 to 45-1210.

[§§ 81-2401 to 2408 all enacted 1988

§§ 81-2401, 2402 amended 2010; 2403, 2404 amended 1992; 2405 to 2408 amended 2012

§§ 45-1201 to 45-1210 enacted 2010; amended 2014]
NPPA: Likely governed by contract and/or .

NCPPA: May withhold a reasonable amount, if contract permits withholding, for:
  1. reasonable evidence showing that contractual completion date will not be met due to unsatisfactory job progress;
  2. third-party claims filed or reasonable evidence that such a claim will be filed with respect to work under the contract; or
  3. failure of the contractor to make timely payments.
Interest under NCPPA is only due after person charged the interest has been notified or provisions under Neb. Rev. Stat. § 45-1205. NPPA: accrues on 31st calendar day after the later of (1) date of receipt of the goods and services or (2) date of receipt of the bill at rate specified in Neb. Rev. Stat. § 45-104.02. Highway or bridge contracts bear different rate.

NCPPA: 1% per month if payment delayed by more than 30 days.
Neither NPPA or NCPPA provides for the award of attorney's fees. NPPA does not apply to highway, or road construction, reconstruction or maintenance. Provisions purporting to waive rights to file a claim against a payment or performance bond generally unenforceable by statute. Some amendments to Neb. Rev. Stat. §§81-2402 made in 2010 to modify retainage and withholding, preserve certain contractor/subcontractor rights, and prevent contracting out of the regime via choice of law clause.
Private Nebraska Construction Prompt Pay Act, Neb. Rev. Stat. §§ 45-1201 to 45-1210

[Enacted 2010; amended 2014]
NCPPA: May withhold a reasonable amount, if contract permits withholding, for:
  1. reasonable evidence showing that contractual completion date will not be met due to unsatisfactory job progress;
  2. third-party claims filed or reasonable evidence that such a claim will be filed with respect to work under the contract; or
  3. failure of the contractor to make timely payments.
Interest under NCPPA is only due after person charged the interest has been notified or provisions under Neb. Rev. Stat. § 45-1205. NCPPA: 1% per month if payment delayed by more than 30 days. NCPPA: does not provide for the award of attorney's fees. Highway construction governed by Neb. Stat.
§ 39-1349.


Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.
Private construction contracts and subcontracts are governed by NCPPA.
Nevada Public Nev. Rev. Stat.§§ 338.400, 415, 420, 425, 430, 435, 455, 460, 510, 515, 520, 525, 530, 535, 550, 555, 560, 565, 570, 590, 595, 600, 605, 610, 630, 635, 640, 645.

§§ 338.400 amended 2005

§§ 338.415 to 435, §§ 338.455, 460, 510, 515 added to NRS by 1973; amended 1977, 1983, 1985, 1999, 2003, 2007

§§ 338.520, 525 amended 2005

§§ 338.530, 535, 550, 555 added to NRS by 1987; amended 1999;

§§ 338.560 to 600 amended 2003

§§ 338.605 to 645 added to NRS by 1999]

Owner to Prime: Failure of the contractor to comply with the contract or applicable building code, law or regulation.

Prime to Sub: (1) expenses contractor reasonably expects to incur as a result of failure by sub to comply with subcontract or building code/law/reg; (2) amount withheld pursuant to claim for wages against sub.

Sub to sub-sub: Similar provisions apply, though amounts are not withheld by the public body based on claims for wages.
Owner to Prime
Notice within 20 days of receipt of payment application specifying detailed reasons for withholding in compliance with the Act.

Prime to Sub
If withholding payment, the contractor must notify subcontractor or supplier in writing within 10 days of receipt of payment application stating amount to be withheld and reasons, in compliance with the Act.
Owner to Prime: Charged rate equal to rate quoted by at least three financial institutions as the highest rate paid on a certificate of deposit whose duration is approximately 90 days on the first day of the quarter if failure to pay within 30 days.

Prime to Sub: Rate equal to lowest daily prime rate at the three largest banks or other financial institutions of the U.S. on the date the contract was executed + 2%, accruing on 10th day of delay.
Reasonable costs and attorney's fees to a contractor, subcontractor or supplier who is the prevailing party in a civil action or an arbitration proceeding to recover an amount owed to it. May also be governed by contract. Does not apply to improvements to real property intended for residential purposes when the residence consists of no more than 4 residential units. N/A Definitions amended in 2015, to come into force in 2017.
Private Nev. Rev. Stat. § 624.029 & 108.22188; §§624.607.

§ 624.029 added 2005

§ 108.22188 added to NRS by 2003

§ 624.607 added by 2001; amended 2005]
Owner to Prime:
  1. work has not been performed or materials / equipment not furnished;
  2. costs and expenses reasonably necessary to correct or repair any work materially not in compliance with agreement exceed 50% of the amount of retention; and
  3. owner has paid or is required to pay pursuant to an official notice from a state agency, or employee benefit trust fund for which owner is liable.
Prime to Sub: Amount contractor has paid or is required to pay pursuant to an official notice from a state agency or employee benefit trust fund for which the owner or higher-tiered contractor may be reasonably held liable.
Owner to Prime: Owner must give notice of any amounts withheld.

Prime to Sub: Notice requirements listed in §624.624, which require written notice of amount withheld, explanation of reason, and include signature of an agent of the prime contractor.
Any money payable accrues interest on date due at a rate equal to the higher of: (1) rate agreed upon by the parties; (2) rate equal to prime rate at largest bank in Nevada immediately preceding time at which agreement was signed or if agreement was oral, time at which terms of the agreement were agreed plus 4% until date of payment. Reasonable attorney's fees and costs for prevailing party. N/A Lien waiver and Pay-if-paid provisions unenforceable. [See
Nev. Rev. Stat. Ann. §§
624.624–626]

Pay-when-Paid clauses suggest time for payment.
Subcontractor has right to stop work if not paid within 45 days of a request for payment, regardless of contractual provisions. [Nev. Rev. Stat. Ann. § 624.626(1)(b)]

Certain provisions are required in NRS §§ 338.150, 153, 155.

Limitations on ability to waive certain rights, obligations, and liabilities.
New Hampshire Public N/A
Private N/A
New Jersey Public N.J. Stat. §§ 2A:30A-1, 30A-2; 40A:11-16.2 (localities), 52:32-40, 52:32-41.

§§ 2A:30A-1, 30A-2 enacted 1991, amended 2006

§§ 40A:11-16.2 enacted 1971, amended 1975, 1979, 1975, 1987, 1997, 1999, 2009 and 2012

§ 52:32-40, 52:32-41 enacted 1991 (older law not repealed).]
No statutory provisions. Determined by contract and common law.

No more than 2% may be withheld as retainage from any payment by a public body.
Prime contractor shall give written notice stating reasons for and amount of withholding from subcontractor. Prime rate plus 1%. Reasonable costs and fees for prevailing party. N/A

Pay-if-Paid enforced if explicit.

Pay-When-Paid suggests time for payment.
Legislative provisions cover both public and private contracts.

New Jersey appears to have two Prompt Payment Acts. Statutes found at N.J. Stat. Ann. §§2A:30A-1 through 2A:30A-2 adopted more recently than §52:32-32.
Private Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. N/A
New Mexico Public N.M. Stat., §§ 57-28-1, 2, 5, 7, 8.

N.M. Stat., §§ 57-28-1, 2, 5, 7, 8 enacted 2001

§ 57-28-2 amended 2007

§ 57-28-5 amended 2007

§ 57-28-7, 8 amended 2007]
Error in submitted invoice. Otherwise not specified in statute. The parties' contract will govern.

Retainage not permitted by statute.
Owner must notify the sender of error in invoice within 7 days. 1.5% per month. Successful party will be awarded reasonable fees and costs. Excludes construction contracts for residential property
containing 4 or fewer
dwelling units.


Pay-if-Paid enforced if explicit.
Legislative provisions cover both public and private contracts.
Private Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. Same as above. N/A
New York Public N.Y. State Fin. Law
§§ 139-f, 179-f (pt. of Art. 11-A); Pub. Auth. Law § 2880; Gen. Mun. Law § 106-b; Hwy. Law § 3 8; NYC Procurement Policy Board Rules § 4-06.

[N.Y. State Fin. Law
§ 139-f enacted or consolidated 1978; amended 1981 - 1995, 2008

§ 179-f enacted or consolidated 1984, sections amended 1988, 1989, 2015

Pub. Auth. Law § 2880 enacted or consolidated 1987, multiple amendments 1988 to 1990

Gen. Mun. Law § 106-b enacted or consolidated 1978, sections amended 1981, 1983, 1992, 1995, 2008]
State Agencies:
  1. audit reveals reasonable cause;
  2. statute/contract requires audit prior to payment;
  3. state does not yet have authorization to make payment;
  4. cash balance of fund from which payment is to be made is insufficient;
  5. inspection by Fed. Govt. needed prior to payment;
  6. conditions of contract not met;
  7. required payment date modified by defects;
  8. failure to submit proper document for final payments on highway contracts.
Municipal Agencies: May withhold amount necessary to satisfy any claims, liens, or judgments outstanding against contractor.

Public Authorities: Reduce payment by unpaid legally enforceable debt that is owed.
N/A Statutory rate. N/A N/A Pay-if-Paid clauses unenforceable.

Pay-When-Paid clauses suggest time for payment.

Any provision that conditions a subcontractor or supplier's right to file a claim or commence an action on a payment bond on exhaustion of another legal remedy, and any provision that waives a subcontractor's right to a lien is void. [NY General Obligations Law § 5-322.1; NY Lien Law § 34]
NY has several overlapping Prompt Payment legislation.

Private N.Y. Gen. Bus. Law
§§ 756 et seq

[Added 2002, amended 2009.]
Owner may decline to approve invoice for:
  1. unsatisfactory or disputed job progress;
  2. defective work or material not remedied;
  3. disputed work materials;
  4. non-compliance with contract;
  5. failure of contractor to make timely payments to subcontractors;
  6. damage to owner;
  7. reasonable evidence that the construction contract cannot be completed for the unpaid balance of the construction contract sum;
  8. failure of the owner's architect to certify payment.
Only an amount sufficient to pay the costs and expenses an owner reasonably expects to incur to
cure the defect or correct any of the items set forth above may be withheld.
N/A 1%/month. Highway construction contracts may have different provisions. N/A Same as above. Any provision in an
agreement in a private construction contract (except material supplier) that makes the contract subject to the laws of a state other than New York
is void and unenforceable. [N.Y. General Business Law § 757]
North Carolina Public N.C. Gen Stat.
§§ 143-134 to 143-134.1, 143.135.

[§§ 143-134 to 143-134.1 enacted or consolidated 1959, sections amended 1967, 1983, 2007]
Owner or contractor may withhold for:
  1. unsatisfactory job progress;
  2. defective construction not remedied;
  3. disputed work;
  4. third-party claims against the owner or reasonable evidence that such claims will be filed;
  5. failure to pay subs;
  6. damage to contractor or other subs and reasonable evidence that the subcontract cannot be completed for the unpaid balance of the contract sum (grounds for contractor only).
No retainage may be withheld where project costs are less than $100,000. Maximum 5% retainage may be withheld where project value exceeds $100,000.
N/A 1% per month. N/A Does not apply to contracts let by the Department of Transportation. N/A N/A
Private N.C. Gen. Stat.
§§ 22C-1 to C-6.

[§§ 22C-1 to C-6 enacted or consolidated 1987, no revisions listed.]

Contractor may withhold payment for:
  1. unsatisfactory job progress;
  2. defective construction not remedied;
  3. disputed work;
  4. third-party claims against the owner or reasonable evidence that such claims will be filed;
  5. failure to pay subs;
  6. damage to contractor or other subs; and
  7. reasonable evidence that the subcontract cannot be completed for the unpaid balance of the contract sum.
Reasonable retainage permitted but may not exceed percentage retained by owner.
N/A 1% per month. N/A Does not apply to residential contractors or to certain improvements to real property
intended for residential purposes.
Pay-if-Paid and Paid-When-Paid provisions are unenforceable.

Payment by the owner to a contractor is not a condition precedent for payment to a subcontractor…and an agreement to the contrary is unenforceable. [N.C. Gen. Stat. § 22C-2]

The contractor shall pay to his subcontractor…within seven days of receipt by the contractor…of each periodic or
final payment. [N.C. Gen. Stat. § 22C-3]
N/A
North Dakota Public N.D. Cent. Code §§ 13-01.1-01 to 06 and 48- 01.2 (public improvement bids and contracts)

§§ 13-01.1-01 to 06 enacted or consolidated 1985

§ 48-01.2 enacted or consolidated 2007, sections amended 2011, 2015]
No statutory provisions. Determined by contract and common law.

Partial payment estimates should include retainage of 10% from each estimate until project is 50% complete; no further retainage permitted unless unsatisfactory progress or performance is documented.
N/A Per contract or 1.75% per month. N/A N/A N/A N/A
Private N/A
Ohio Public Ohio Rev. Code
§§ 126.30.

[Effective date 2000; no revisions indicated.]
N/A

Owner may retain 8% of each progress payment until job is 50% complete; no further funds may be retained after. Initial retained funds not to be disbursed until “there exists no other reason to withhold retainage” and a “major portion of the project” is (1) substantially complete and (2) occupied, in use or otherwise accepted.
N/A Average of the prime rate established at the commercial banks in a city of over one hundred thousand population that is nearest the construction project.

For subcontractors, late payments accrue interest at 18% per year.
N/A N/A N/A
Private Ohio Rev. Code
§§ 4113.61.

[Effective date 1993; revised 2007.]
Contractor or sub may withhold amounts necessary to resolve disputed liens or claims involving the work, labour performed, or materials furnished by a subcontractor or material supplier. N/A 18% per year. In a court action to recover payments due plus interest, court shall award the prevailing party reasonable attorney‘s fees and costs unless doing so would be inequitable. Court will consider good faith, amount recovered compared to amount demanded, and nature of / time expended in rendering services.
Does not apply to any construction or improvement of any single-, two-,
or three-family detached dwelling houses.
Owner to Prime: Pay-if-Paid clause enforced if explicit; Pay-When-Paid clause suggests time for payment.

Prime to Sub: Pay-if-Paid and Pay-When-Paid clauses not enforceable.

Any attempt to establish payment periods longer or interest rates smaller than those specified for subcontractors in statutory regime will be unenforceable. [Id. § 4113.62(D)(2)]
N/A
Oklahoma Public Okla. Stat., Title 61, §§ 221-227;
Title 61, §§ 113.1-113.3 (retainage generally); 62, §§ 41.4a -41.4d (prompt payment by government generally).

[§ 61-221-227 enacted 2004; no revisions indicated

§ 61-13.1-13.3 enacted 1977; revised 1983, 1995, 2006, and 2011

§ 62-41.4a-d enacted 1983; no revisions indicated.]
An owner or prime contractor can only reduce a proper invoice of a prime contractor if reasons are delivered within the statutory timeline. Reduction may not be more than amount reasonable to correct the work, as set forth in writing.

Retainage by owner, contractor or sub permitted, but may not exceed 10% of amount of payment due.
Owner must deliver reasons for witholding within 14 calendar days of receipt of the invoice.

Contractor must deliver reasons within 7 days of receipt of the subcontractor's invoice.
Prime contractor entitled to statutory rate.

Subs get 1.5% per month.
N/A Highway construction, family dwelling construction for buildings with 1-4 units, and contracts less than $25,000 excluded. Pay-if-Paid enforced if explicit.

Pay-When-Paid suggests time for payment.
Choice of law or choice of venue provision in favour of another state is void. Any provision
disallowing or altering the rights of a contractor, subcontractor, sub-subcontractor, or material are also void and unenforceable.
[Okla. Stat. tit. 61, § 227(B)]
Private 15 Okl. Stat. § 820.

[Enacted 2010; no revisions indicated]
Owner my reduce progress payment or withhold payment as provided by contract. N/A N/A N/A Applies to private construction projects involving a bid process; does not apply to privately negotiated contracts. Pay-if-Paid enforced if explicit.

Pay-When-Paid suggests time for payment.
Prime contractor may suspend work if payment is delayed, and in accordance with statute.

Certain contract clauses will be void against public policy and unenforceable. See Id. § 821(B)(1) (foreign forum selection clause); Id. 821(B)(2) (any clause which alters rights under the statute).
Oregon Public Or. Rev. Stat.
§§ 279C.320, .505,
.515, .570, .580.

[Enacted 2003; revised in 2005 and 2013]
Agency may withhold payment if:
  1. the estimate of work completed is not approved by the contracting agency;
  2. there is a good faith dispute;
  3. there is a defect or impropriety in any submitted invoice.
A contractor/sub can include contractual provision allowing them to retain 150% subject to a good faith dispute without incurring interest. A good faith dispute means a dispute concerning items 1,2,5-8 in list below.
If an incorrect invoice is submitted, the contracting agency must notify the contractor within 15 days and provide reasons; if the error is corrected within 7 days, payment must be made within the original timeframe. Interest at statutory rate up to a maximum of 30% for progress payments to prime; 1.5% per month for final payment to prime; 9% per annum for prime to subs. Whenever a contractor brings formal administrative or judicial action to collect interest due, the prevailing party is entitled to costs and reasonable attorney fees. N/A N/A N/A
Private Or. Rev. Stat.
§§ 701.620 et seq. SB 384

[Enacted 1989; SB 384 effective as of 2012.

Note: Sections 701.620 to 701.645 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS
chapter 701 or any series therein by legislative action.]
An owner may withhold payment for:
  1. unsatisfactory job progress;
  2. defective work not remedied;
  3. disputed work, materials or products; (owner only)
  4. failure to comply with other material provisions of contract; (owner only)
  5. third-party claims filed;
  6. failure to make timely payments;
  7. damage to the owner; and
  8. reasonable evidence that the subcontract cannot be completed for the unpaid balance of the subcontract sum; or
  9. other items as allowed under the contract.
A contractor/sub may withhold payment for a documented dispute falling into one of the above categories.
N/A 1.5% per month for
subcontractors and
lower tiers
N/A N/A Pay-if-Paid enforced if explicit.

Pay-When-Paid suggests time for payment.

The original contractor must pay subcontractors within seven days of receipt of payment from the owner [Or. Rev. Stat. § 701.630].
N/A
Pennsylvania Public 62 Pa. Con. Stat.
§§ 3931 et seq.

[Enacted 1998; No revisions indicated.]
Agency or contractor entitled to withhold payments for 'deficiency items.' A deficiency item is defined as work that was not performed according to contract.

Retainage permitted for no more than 10% of amount due until 50% of contractual completion (with some exceptions). At that point, half of the retainage shall be paid to the contractor provided 1) the architect and engineer approve the application for payment, 2) the contractor is making satisfactory progress, and 3) there is no specific cause for greater withholding.
If an agency or contractor withholds payment for a
deficiency item, it shall notify the contractor/sub within the time period specified in the contract or 15 calendar days of the date that the application for payment is received.
Interest at statutory rate for overdue taxes; 6% per year for final payments due; 1% per month additional penalty for amounts “withheld in bad faith”. Attorney's fees may be awarded but only in cases of bad faith, defined as "arbitrary or vexatious" conduct. Department
of Transportation contracts under section 301(c)(1) (relating to procurement responsibility) excluded.

Exceptions to progress payment obligations for certain situations.
A choice of law or choice of venue provision in favour of a State other than Pennsylvania is
unenforceable.
[62 Pa. Const. Stat. § 393]

Once a contractor has made payment to the subcontractor
in accordance with the provisions of the statute, future claims for payment against the contractor or the contractor's surety by parties owed payment from the subcontractor which has been paid shall be barred. [62 Pa. Const. Stat. § 3939(b)]
Private 73 Pa. C.S. §§ 501-516.

[Enacted 1995; no revisions indicated]
Owner, contractor and sub are entitled to withhold payment for deficiency items according to the terms of the contract. If the owner/ contractor/sub withholds payment for a deficiency item, it must notify the contractor/sub of the deficiency within 7 calendar days of the day the invoice is received. 1% per month;
additional penalty of
1% per month for
amounts “wrongfully
withheld”.
Substantially prevailing party in any proceeding to recover any payment under the legislation shall be awarded a reasonable attorney fee. Excludes improvements of real property consisting of 6 or fewer residential units under construction
simultaneously or contracts for purchase of materials by a person performing work on their own property.

Will not operate to prevent receipt of federal aid.
Pay-if-Paid clause enforced if explicit.

Pay-When-Paid clause suggests time for payment.

The subcontractor shall be paid the full or proportional amount received for each subcontractor's work and material 14 days after receipt of progress payment. [2 Pa. Cons. Stat. § 3933 (c)]
Choice of law or choice of venue provision in favour of a State other
than Pennsylvania is unenforceable.
[73 Pa. Stat. Ann. § 514]
Rhode Island Public R.I. Gen. Laws
§§ 42-11.1-1 to
42-11.1-16, 37-13-5.

[§ 37-13-5 enacted 136; most recently revised in 1965

§§ 42-11.1-1 to 42-11.1-16 enacted in 1987, selected sections revised in 1993]
Agency to Prime:
  1. the state controller determines that there is reasonable cause to believe payment is not properly due;
  2. audit required by contract or statute;
  3. government has not yet authorized payment;
  4. insufficient cash balance of fund from which payment is to be made;
  5. a proper invoice must be examined by the federal government prior to payment;
  6. noncompliance with contract;
  7. the required payment date is modified in accordance with statute.
Prime to Sub:
Prime may set off payment to subcontractor for any legally enforceable debt owed. Otherwise, contract and statute governs.
Within 5 working days after receipt and to notify contractor of defects in any delivered goods, property or services. Interest at prime rate as reported on money market page of Wall Street Journal published on first regular business day of each month. No provision for
subs, must file notice of claim for interest to start accruing.
N/A Certain provisions do not apply to contracts awarded by the Department of Transportation, contracts for public works, sewer, or water main construction, non-profit service providers.

Pay-if-Paid clause enforced if explicit.
N/A
Private N/A
South Carolina Public S.C. Code §§ 29-6-10 et seq.

[Enacted 1990; no revisions indicated.]
Owner, contractor or sub may withhold for:
  1. unsatisfactory job progress;
  2. defective construction not remedied;
  3. disputed work;
  4. third party claims filed;
  5. failure of contractor or subcontractor to make timely payments;
  6. damage to owner, contractor, or another subcontractor;
  7. reasonable evidence that contract or subcontract cannot be completed for the unpaid balance of the contract or subcontract sum.
Reasonable amount of progress payment permitted to be withheld by owner, contractor or sub for retainage. Amount not to exceed 3.5% of each payment.
N/A Interest at 1% per
month if notice and statutory cite are on the invoice; rate may be varied if rights under statute are specifically waived.
No specific provision, but if the payor fails to make a fair investigation or otherwise unreasonably refuses to pay
a contractor/sub's claim or proper portion, he or she is liable for reasonable attorney's fees and interest at the judgment rate.
N/A Payment by upstream entity cannot be a condition precedent to payment of a party lower in the chain. Any agreement to the contrary is unenforceable. [S.C. Code Ann. § 29-6-230]

However, Pay-When-Paid clauses have been interpreted to merely establish a reasonable time for payment.
Legislative provisions cover both public and private contracts.
Private Same as above. Same as above. Same as above. Same as above. Same as above. Statutes do not apply to residential
homebuilders, real property improvements intended for residential purposes which consist of 16 or
fewer units, and private persons or entities owning the improvements to real property when the
improvements are not financed by a non-owner.
Same as above. N/A
South Dakota Public S.D. Codified Laws §§ 5-26-1 to 5-26-8.

[Enacted or consolidated 1984; revised 1985, 1988]
Payment may be withheld by agency:
  1. where the amount due is disputed; or
  2. where compliance with the contract is disputed.
An amount necessary to complete the improvement shall be retained from the final payment until the contract is complete and final inspection is made. Retainage must be released within 30 days of completion of work as established by architect/ engineer's acceptance letter or by use of the improvement.

Any retainage from contractor/sub would be contractual. No statutory provisions.
Within 10 days of receipt of an invoice, agency must give written notice to contractor of its disagreement with property or services provided, and give reasons for disagreement.

1.5% per month or per contract.

Agency not required to pay interest if less than $5.
N/A N/A N/A N/A
Private N/A
Tennessee Public Tenn. Code §§ 12-4-701 to 12-4-707.

[Enacted or consolidated 1985

§ 12-4-702 amended 1986, 1988]
Payment may be withheld if there is a dispute over the amount due or compliance with the contract.

Retainage may not exceed 5% of contract amount and must be released within 90 days of substantial or full completion, whichever occurs first.

Retainage held by contractor or sub must be released within 10 days of receipt from agency.
N/A 1.5% per month or per contract. N/A N/A

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.

Private Tenn. Code §§ 66-34-101 to 66-34-703 HB 3068.

[Enacted or consolidated 1991 except § 66-34-104 enacted or consolidated 1975 with various amendments from 1985 to 2012.

§ 66-34-103 amended 2008, 2012

§ 66-34-202; 66-34-302 amended 2006

§ 66-34-203 and 204; 66-34-303 amended 2007

§ 66-34-601 amended 2000]
Payment may be withheld in accordance with contract.

Retainage may not exceed 5% of contract amount and must be released within 90 days of substantial or full completion, whichever occurs first.
N/A Interest rate per contract or, if no contractual rate, per statutory rate. Attorney's fees may be awarded but only if the party has acted in bad faith. Excludes construction
of 4 single family units
or less.

Does not apply to any bank, savings bank, savings and loan association, industrial loan and thrift company, other regulated financial institution or insurance company.


Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.

Notification of non-payment and intent to seek relief under the prompt pay statutes must be given to the non-paying party.
Texas Public Tx. Govt. Code §§ 2251.001 - 251.043.

[Added 1993; some provisions amended by Acts 1993, 1995, 1997, 1999, 2001, 2003, 2007.

For example:
§ 2251.025 amended by Acts 1997, 2001, 2003

§ 2251.027 amended by Acts 1997, 2001

§ 2251.030 amended by Acts 1999, 2001]
Payment may be withheld if:
  1. bona fide dispute between the agency and the contractor/sub or supplier about the goods delivered or the services performed:
  2. bona fide dispute between a contractor and sub or sub and supplier about goods delivered or services performed;
  3. the terms of a federal contract, grant, regulation or statute prevent the agency from making a timely payment with federal funds; or
  4. the invoice is not mailed to the person to whom it is addressed in strict accordance with any instruction on the purchase order relating to the payment.
Retainage is generally per contract.
N/A

Agency must notify contractor/sub of invoice error within 21 days.
Prime rate on the first weekday of the preceding July plus 1%. Opposing party shall pay reasonable attorney fees of the prevailing party in a formal administrative or judicial action to collect an invoice payment or interest due.

Subs not specifically included above but can recover reasonable attorney's fees under Tex. Civ. Prac. & Rem. Code § 38.001.
N/A

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.

A party may not waive any right or remedy granted by the prompt payment statutes. Any purported waiver is void.

A contractor or sub has the right to suspend performance under a contract for non-payment following specific notice requirements.

Highway-related contracts have specific provisions in Texas Code.
Private Tex. Prop. Code §§ 28.001 to 28.010.

[§§ 28.001 to 28.008 added by Acts 1993, some sections amended by Acts 1999.

§§ 28.009 to 28.010 added by Acts 1999; no amendments listed.]
Owner may withhold payment for:
  1. good faith dispute regarding amount owed or proper performance of work; or
  2. upon lender's failure to disburse funds, but payment must be made by 5th day following receipt of loan proceeds.
Owner must retain 10% of contract price or value of completed work for 30 days after work is completed.

Grounds for withholding and retainage for contractors/subs not specified; contract likely governs.
N/A 1.5% per month. Court may award equitable and just attorney’s fees Oil field service or mineral development agreements are exempt. Pay-if-Paid clause enforced if specific, but enforcement
prohibited if:
  1. non-payment is not due to fault of claimant;
  2. claimant sends notice objecting to enforcement of clause in compliance with statute;
  3. sham relationship exists between owner and contractor, or
  4. enforcement would be unconscionable.
[Tex. Bus. & Com. Code §56.001 et seq.]
No provision of the Act may be waived, other than the permissible contractual extension of payment period for work done on single family home of 60 days following receipt of payment request.
Utah Public Utah Code §§ 13-8-1 to 13-8-5, 15-6-1 to 15-6-6.

[§§ 13-8-1 to 13-8-5 enacted 1997 except § 13-8-2 enacted 1988; § 13-8-6 enacted 2011; § 13-8-4 to § 13-8-5 amended 2012.

§§ 15-6-1 to 15-6-2 enacted or consolidated 1983, § 15-6-3 to § 15-6-5 enacted 1989; no amendments listed.]
Agency may withhold payment for:
  1. dispute regarding amount owed or proper performance of work; or
  2. contractor's default or breach of terms and conditions of contract (permits withholding of amount required to cure or if substantially complete, up to twice the fair market value of work not yet completed).
Retainage may not exceed 5% of any given payment; total retainage may not exceed 5% of the total construction price.
Within 45 days from receipt of invoice, agency must describe in writing what portion of work was not properly completed. 2% above rate paid by Internal Revenue Service on refund claims.

Late payments to subcontractors and suppliers from contractor subject to interest at 15.5% per year.
Successful party entitled to attorney's fees and other allowable costs in any action to collect retained proceeds withheld in violation of the statute. Provisions do not apply to contracts involving federal funds, or mixed state and federal funds.

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.

Choice of venue provisions are void and unenforceable if one party to the construction contract is domiciled in Utah and the work is done for a Utah construction project.

With specified statutory exceptions, indemnification
provisions between any of the following parties are void: (i) a construction manager; (ii) a general contractor; (iii) a
subcontractor; (iv) a sub-subcontractor; and (v) a supplier.
Private Utah Code §§ 13-8-5, 58-55-601 to 58-55-605.

[§ 13-8-5 see above.

§ 58-55-601 to § 58-55-603 enactments not readily available; select provisions amended 1994, 1999.

§ 58-55-604 amended 2008

§ 58-55-605 enacted 2014, no amendments listed]
Owner may withhold payment for:
  1. dispute regarding amount owed or proper performance of work; or
  2. contractor's default or breach of terms and conditions of contract (permits withholding of amount required to cure or if substantially complete, up to twice the fair market value of work not yet completed).
Retainage may not exceed 5% of any given payment; total retainage may not exceed 5% of the total construction price.
N/A Any party who knowingly and wrongfully withholds a retention will be subject to a charge of 2% per month in addition to any interest otherwise due.
Successful party entitled to attorney's fees and other allowable costs in any action to collect retained proceeds withheld in violation of the statute. N/A Pay-if-Paid provisions unenforceable by statute as applied to mechanics' liens, except in respect of contracts involving private construction work on residential property consisting of four units or less.
[Utah Code Ann. § 13-8-4(3)(a)]
Construction liens available in Title 38, Chapter 1a of Statute.
Vermont Public Vt. Stat., Title 9, §§ 4001-4009, Title 12, § 2903.

[§§ 4001-4009 added 1991 except § 4005a added 2007

§ 4002 amended 1993]
Agency, contractor or sub may withhold payment in an amount equaling the value of any good faith claims, including claims arising from:
  1. unsatisfactory job progress;
  2. defective construction;
  3. disputed work; or
  4. third party claims.
Retainage is per contract between owner, contractor and/or subs. Amounts retained during performance of the contract and due upon completion must be paid within 30 days of final acceptance of work and to subcontractors within 7 days of receipt from contractor/sub.
N/A 12% per year, per statutory rate.

If a party is found through arbitration or litigation to have failed to comply with the terms of the Act, then an additional penalty of 1% per month on all sums wrongfully withheld will be awarded.
Attorneys fees and expenses—in an amount to be determined by a court or arbitrator—shall be awarded to the substantially prevailing party in any proceeding to recover payment under the Act.
N/A Pay-if-Paid provisions unenforceable in contracts with subs. [Vt. Stat. tit. 9 § 4003(c)]

Legislative provisions cover both public and private contracts.

If necessary to receive federal aid, the provision of this chapter may be varied by contract.
Private Same as above. Same as above. Same as above. Same as above. Same as above. Does not apply to contracts for the
purchase of materials by a natural person performing work on his or her own property.
Same as above. Same as above.
Virginia Public Va. Code §§ 2.2-4347 to 2.2-4356.

[Enacted or consolidated 1982; last revised 2001]
Not specified, other than for an improper invoice. Likely determined by reference to contract and common law.

No more than 5% retainage to ensure faithful contract performance.
If the invoice is defective, the paying party must notify the payee within:
1) State agency: 15 day; and
2) Local government: 20 days.
State agency: per contract or at base rate assessed on corporate loans, as reported daily in Wall Street Journal.

Local government:
not to exceed 1% per month.

Per contract or 1% per month for subcontractors.
N/A Does not apply to the late payment provisions of any public utility tariff
prescribed by the State Corporation Commission.


Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.

"No damage for delay" clauses are void by statute, to the extent the delay is caused by acts or omissions of the public agency and due to causes within their control.
Private N/A
Washington Public Wash. Rev. Code
§§ 39.76.010 to 39.76.40, 39.04.250.

[§§ 39.76.010 to 39.76.40 enacted or consolidated 1981, except § 39.76.011 enacted or consolidated 1992

§ 39.76.020 amended 2009

§ 39.04.250 enacted or consolidated 1992, no listed amendments]
Payment may be withheld if:
  1. unsatisfactory performance (up to 30 days following remedy of defective work);
  2. submission of an improper payment request (up to 30 days following submission of proper request); or
  3. good faith dispute over all or a portion of the amount due (up to 150% of the disputed amount, and full payment to parties not involved in dispute)
Either a bond or retainage is required, but retainage is not to exceed 5% of the money earned by the contractor.
If payment withheld for unsatisfactory performance or improper payment request, agency must notify contractor within 8 working days, in writing, specifying reason for withholding and remedial actions required. 1% per month, with certain exceptions.

Subcontractors entitled to interest at highest rate allowed under Wash. Rev. Code §19.52.025. Also entitled to interest on payments withheld due to failure of prime contractor to comply with notice and payment provisions.
In an action to collect interest, prevailing party entitled to award of reasonable attorney's fees. N/A

Pay-if-Paid clauses enforced if explicit.

Pay-When-Paid clauses suggest time for payment.

"No damage for delay" clauses are void by statute where delay is caused by the acts or omissions of the contractee or persons acting for the contractee.
Private N/A
Washington D.C. [District of Columbia] Public D.C. Code §§ 2-221.01 to 2- 221.06.

[Enacted or consolidated 1985; sections amended 1992, 1997, 1998, 1999.]
Payment may be withheld for any defect in the invoice or delivered goods, property or services or impropriety of any kind. Notice of withholding must be given in writing within 15 days of receipt of invoice. Interest at rate determined by regulation but computed at a rate not less than 1%. N/A N/A

Pay-if-Paid clauses enforced if explicit.

Private D.C. Code § 27-131 to § 27-136

[Enacted 2013; no amendments listed]
N/A N/A 1.5% per month or any part of a month on any undisputed amount not paid on time. If a contractor or subcontractor prevails in a civil action to collect interest penalties, an award shall be made of costs and disbursements, including reasonable attorney's fees, incurred in bringing the action. N/A N/A Conditions of payment to the subcontractor on receipt by the contractor of payment from the owner may not abrogate the subcontractor's right to:
1) Claim a mechanics' lien; or
(2) Sue on a contractor's bond. [§ 27–134]
West Virginia Public W. Va. Code
§§ 7-5-7 (county), 8-13-22d (municipality).

[§ 7-5-7 amended and reenacted 1995

§ 8-13-22d enacted 1995]
N/A N/A Statutory rate. N/A Contracts with the state are not covered by these provisions.

Pay-if-Paid enforced if explicit.

W. Va. Code
§§ 5A-3-54 (state)
repealed 3/2010. Legislature considered similar bill: "Prompt Pay Act of 2011" SB 462 (2011) and HB 3181 (2012). Appears that this bill was not successfully passed.
Private N/A
Wisconsin Public Wis. Stat. §§ 16.528 (state); 16.53(2) (rejection of invoice); 66.0135 (local).

[§ 16.528 (state) enacted or consolidated 1985; amended periodically from 1987 to 1999, 2009, 2011, 2013, 2015

§ 66.0135 enacted or consolidated 1989, revised 1999]


Owner may withhold no more than 5% of payment on first 50% of project; no retainage on remaining 50% unless architect or engineer certifies that the job is not proceeding satisfactorily, in which case 10% may be retained. Retainage must be returned upon substantial completion.

Retainage for contractors/sub not specified by statute.
N/A 12% per year, compounded monthly, except in certain circumstances. Attorney's fees shall be awarded to prevailing party in an action to recover interest. N/A Pay-if-Paid provisions unenforceable: provisions requiring a person to waive a right to a construction lien, or making payment to a prime contractor a condition precedent to payment to a subcontractor are void. [Wis. Stat. § 779.135]

Pay-When-Paid clauses suggest time for payment.
Parties cannot make the contract subject to the laws of another state or require that
any litigation, arbitration or other dispute resolution process on the contract occur in another state.
Private N/A
Wyoming Public Wyo. Stat. §§ 16-6-601 to 16-6-602.

[Enacted or consolidated 1983]
Agency may withhold payment for good faith dispute with respect to all or a portion of amount due.

Up to 10% of value of work may be withheld on first 50% of project; no retainage required if satisfactory progress being made on second half of project and approved by surety who furnished bonds but may also retain up to 10%.
N/A 1.5% per month. N/A Does not apply to projects partially funded by the federal government or some other source that has inconsistent requirements regarding retention of payments. N/A N/A
Private N/A