Retainage and payment laws by state
The retainage cap, the payment deadlines and the pay if paid rule for private and public work in all 50 states and DC, each with the statute and the official link.
Published October 17, 2026. Last checked October 17, 2026.
Run On CFOS read the retainage statutes for all 50 states and DC on October 17, 2026: 73 of 102 private and public rows cite a retainage statute from the state's official text, 14 found no retainage statute, and 15 aren't verified yet.
Run On CFOS read the payment timing laws for all 50 states and DC on October 17, 2026: 9 of 102 private and public rows void a pay if paid clause, 11 limit one, 12 found no payment timing statute, and 15 aren't verified yet.
Statutes change. Read the current text at the official link before you rely on a row, and ask a construction attorney. This page isn't legal advice.
Retainage cap by state
| State | Private work | Public work |
|---|---|---|
| Alabama | 10 | 5 |
| Alaska | No statute found | no statutory limit |
| Arizona | no statutory limit | 10 |
| Arkansas | Not verified yet | Not verified yet |
| California | 5 | 5 |
| Colorado | Not verified yet | Not verified yet |
| Connecticut | 5 | 7.5 (state agencies; reduced to 5 at 50% completion); 2.5 (Department of Transportation); 5 (municipalities) |
| Delaware | no statutory limit | 5 |
| District of Columbia | No statute found | 10 |
| Florida | no statutory limit | 5 |
| Georgia | Not verified yet | Not verified yet |
| Hawaii | No statute found | 5 |
| Idaho | 5 | 5 |
| Illinois | 10 (until 50% complete), then 5 | 10 (until 50% complete), then 5 |
| Indiana | No statute found | 6 (until 50% complete, then nothing further) or 3 (until substantial completion), at the owner's election |
| Iowa | No statute found | 3 |
| Kansas | 5 (up to 10 if the owner or contractor determines a higher rate is required) | 5 (up to 10 if the owner or contractor determines a higher rate is required) |
| Kentucky | 10 (until 50% complete), then 5 of the total contract amount | 10 (until 50% complete), then 5 of the total contract amount |
| Louisiana | no statutory limit | 10 (projects under $500,000); 5 ($500,000 or more) |
| Maine | no statutory limit | 5 |
| Maryland | 5 (when the contractor has furnished 100% performance and 100% payment security) | 5 (when the contractor has furnished 100% payment and 100% performance security) |
| Massachusetts | 5 | 5 |
| Michigan | Not verified yet | 10 (until work is 50% in place; no further retainage after that unless for cause) |
| Minnesota | 5 | 5 |
| Mississippi | Not verified yet | Not verified yet |
| Missouri | 10 | 5 (10 if no bond is required because the contract is not estimated to exceed $50,000) |
| Montana | No statute found | 5 |
| Nebraska | 10 (5 on later payments once 50% complete, with assurances) | 10 (5 on later payments once 50% complete, with assurances) |
| Nevada | 5 | 5 (until 50% complete); after that 2.5 or 5 depending on § 338.525 withholding |
| New Hampshire | Not verified yet | no statutory limit |
| New Jersey | no statutory limit | 2 |
| New Mexico | Not verified yet | Not verified yet |
| New York | 5 | 5 (up to 10 if no full performance and labor-and-material bonds are required) |
| North Carolina | no statutory limit | 5 (none on projects under $150,000; none further after 50% complete if performance is satisfactory) |
| North Dakota | 10 (until 50% complete, then no further retainage) | 10 (until 50% complete, then no further retainage unless unsatisfactory progress is documented) |
| Ohio | no statutory limit | 4 (partial payments at not less than 96% of estimates) |
| Oklahoma | No statute found | 5 (reduced to 2.5 after 50% complete with satisfactory progress) |
| Oregon | 5 | 5 |
| Pennsylvania | Not verified yet | 10 (until 50% complete; half returned at 50%; then 5 of completed work); Department of General Services 6, then 3 |
| Rhode Island | 5 | 5 |
| South Carolina | no statutory limit | 3.5 |
| South Dakota | No statute found | no statutory limit |
| Tennessee | Not verified yet | Not verified yet |
| Texas | no statutory limit (owner must reserve 10%) | 10 (contracts under $5 million and dam contracts); 5 (contracts of $5 million or more) |
| Utah | 5 | 5 |
| Vermont | no statutory limit | no statutory limit |
| Virginia | No statute found | 5 |
| Washington | No statute found | 5 |
| West Virginia | No statute found | No statute found |
| Wisconsin | No statute found | 5 (until 50% complete; total up to 10 if progress is unsatisfactory) |
| Wyoming | No statute found | 5 |
Each state, with the statute
Alabama
10
Ala. Code § 8-29-3 (see also § 8-29-7) (last amended 2011). Last checked October 17, 2026.
Release. The owner shall release and pay retainage to the contractor for work completed on any construction contract no later than 60 days after the completion of the contractor’s work defined in its contract with the owner, or no later than 60 days after substantial completion of the project, whichever occurs first, and in both events, with all necessary certificates of occupancy having been issued.
Interest or penalty. If an owner withholds an amount greater than that allowed by this subsection, the owner shall be liable to the contractor for interest accruing on the excess amount withheld at the rate of one percent per month.
Exemptions. § 8-29-3(m): subsections (h)-(l) do not apply to projects for or by an electric utility regulated by the Public Service Commission. § 8-29-7: chapter does not apply to residential homebuilders; residential improvements of 16 or fewer units; contracts of $10,000 or less; contracts with the state or local governments.
Key sentence. There shall be retained not more than 10 percent of the estimated amount of work properly done and the value of materials stored on the site or suitably stored and insured off-site, and after 50 percent completion has been accomplished, no further retainage shall be withheld.
5
Ala. Code § 39-2-12 (last amended 2014). Last checked October 17, 2026.
Release. The retainage as set out above shall be held until final completion and acceptance of all work covered by the contract unless the escrow or deposit arrangement described in subsections (f) and (g) is utilized.
Interest or penalty. Such payment shall become due and owing 35 days after all the requirements of subdivision (1) are fulfilled ... The interest rate for payments shall be the legal amount currently assessed for under payment of taxes under Section 40-1-44 (a).
Exemptions. No retainage on Alabama Department of Transportation highway, bridge or road contracts; section does not apply to state agencies under Chapter 1 of Title 33; payment provisions do not apply to disaster response and recovery contracts.
Key sentence. In making the partial payments, there shall be retained not more than five percent of the estimated amount of work done and the value of materials stored on the site or suitably stored and insured off-site, and after 50 percent completion has been accomplished, no further retainage shall be withheld.
Alaska
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
no statutory limit
AS 36.90.250; AS 36.90.210. Last checked October 17, 2026.
Release. the subcontractor all retainage due under the subcontract within eight working days after final payment is received from the state or political subdivision or after the notice period under AS 36.25.020(b) expires, whichever is later;
Interest or penalty. The state or a political subdivision of the state shall pay to the prime contractor interest on retainage, including warranty retainage, on a contract for public construction or public works at an interest rate that is equal to the amount set out in AS 45.45.010(a).
Exemptions. A political subdivision that has a population of 500 or less is exempt from the payment of interest under (a) of this section.
Key sentence. Interest on retainage accrues from the date of approval of a pay request until the date of payment to the contractor.
Arizona
no statutory limit
A.R.S. § 32-1182. Last checked October 17, 2026.
Release. On substantial completion of the work, a contractor shall submit a billing or estimate for release of retention. ... Except as provided in subsections C and H of this section, the owner shall pay the retention to the contractor within seven days after the date the billing or estimate for release of retention is certified and approved.
Interest or penalty. If an owner or a third party designated by an owner as the person responsible for making progress payments, releasing retention or making final payment on a construction contract does not make a timely payment on amounts due pursuant to this section, the owner shall pay the contractor interest at the rate of one and one-half percent a month or fraction of a month on the unpaid balance, or at a higher rate as the parties to the construction contract agree.
Key sentence. The owner may withhold from a progress payment a reasonable amount for retention.
10
A.R.S. § 34-221(C) (agents for public buildings and improvements); also § 41-2576 (state procurement). Last checked October 17, 2026.
Release. Ten percent of all estimates shall be retained by the agent as a guarantee for complete performance of the contract, to be paid to the contractor within sixty days after completion or filing notice of completion of the contract.
Interest or penalty. If any payment to a contractor is delayed after the date due, interest shall be paid at the rate of one percent per month or fraction of a month on such unpaid balance as may be due.
Exemptions. § 41-2576(E): no retention for job-order-contracting construction services contracts; the agency may elect no retention for construction-manager-at-risk and design-build contracts.
Key sentence. After the contract is fifty percent completed, not more than five percent of the amount of any subsequent progress payments made under the contract may be retained if the contractor is making satisfactory progress on the project, except that if at any time the owner determines satisfactory progress is not being made, ten percent retention shall be reinstated for all progress payments made under the contract subsequent to the determination.
Arkansas
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
California
5
Cal. Civ. Code §§ 8811, 8812, 8814, 8818 (last amended 2026). Last checked October 17, 2026.
Release. If an owner withholds a retention from a direct contractor, the owner shall, within 45 days after completion of the work of improvement, pay the retention to the contractor.
Interest or penalty. The owner or direct contractor is liable to the person to which payment is owed for a penalty of 2 percent per month on the amount wrongfully withheld, in place of any interest otherwise due.
Exemptions. § 8811(a): applies to private contracts entered into on or after January 1, 2026. § 8811(b)(2): the cap does not apply when bonds were required at bid time and the subcontractor fails to furnish them. § 8811(b)(3): the cap does not apply to a residential project that is not mixed-use and does not exceed four stories.
Key sentence. A retention payment withheld from a payment by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, for a private work of improvement, shall not exceed 5 percent of the payment.
5
Cal. Pub. Cont. Code §§ 7201, 7107 (last amended 2023). Last checked October 17, 2026.
Release. Within 60 days after the date of completion of the work of improvement, the retention withheld by the public entity shall be released.
Interest or penalty. In the event that retention payments are not made within the time periods required by this section, the public entity or original contractor withholding the unpaid amounts shall be subject to a charge of 2 percent per month on the improperly withheld amount, in lieu of any interest otherwise due.
Exemptions. § 7201(b)(3)-(4): retention may exceed 5% on projects found 'substantially complex' before bid (state department director, or the local governing body at a noticed public hearing). § 7201(b)(2): the cap does not apply when a sub fails to furnish required bonds. § 7201 applies to contracts entered into on or after January 1, 2012.
Key sentence. The retention proceeds withheld from any payment by a public entity from the original contractor, by the original contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder shall not exceed 5 percent of the payment.
Colorado
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Connecticut
5
Conn. Gen. Stat. §§ 42-158i, 42-158k, 42-158p, 42-158q (last amended 2017). Last checked October 17, 2026.
Release. All retainage shall be paid by the owner not later than thirty days after the issuance of a certificate of final completion by the owner or the owner's authorized representative or not later than thirty days after the equivalent written acceptance of the construction project work by the owner.
Interest or penalty. If an owner fails to deposit retainage that is withheld or to release retainage as required by public act 03-167*, the owner shall pay to the contractor an additional one and one-half per cent of the amount not deposited or released for each month or fraction of a month, until the retainage amount is paid in full.
Exemptions. § 42-158i(2): excludes public contracts, HUD-funded or HUD-insured projects, owner contracts of $25,000 or less and their subcontracts, and buildings for residential occupancy with four or fewer units. § 42-158q: escrow requirement does not apply to residential property with four or fewer units, contracts under $25,000, or public contracts.
Key sentence. No construction contract may provide for any retainage in an amount that exceeds five per cent of the estimated amount of a progress payment for the life of the construction project.
7.5 (state agencies; reduced to 5 at 50% completion); 2.5 (Department of Transportation); 5 (municipalities)
Conn. Gen. Stat. § 49-41b (last amended 2016). Last checked October 17, 2026.
Release. Payment shall be made not later than ninety days after a complete application for payment demonstrating that fifty per cent contract completion has been submitted to the awarding authority.
Exemptions. Applies only when a payment bond is required under § 49-41 (contracts over $100,000) and the prime must furnish a full performance bond.
Key sentence. the awarding authority shall not withhold more than seven and one-half per cent from any periodic or final payment which is otherwise properly due to the general or prime contractor under the terms of such contract, provided, when fifty per cent of the contract is completed, said amount shall be reduced to five per cent
Delaware
no statutory limit
6 Del. C. §§ 3506, 3507 (Building Construction Payments Act). Last checked October 17, 2026.
Exemptions. § 3507(f): does not apply to public works contracts under Chapter 69 of Title 29; contracts for 6 or fewer residential units under construction at once, or alteration or repair of a single residential unit; or materials bought by a person working on their own property.
Key sentence. This subsection shall not be construed to impair the right of an owner to include in a contract provisions that permit the owner to retain a specified percentage of each progress payment otherwise due to a contractor and each supplier for satisfactory performance under the contract.
5
29 Del. C. § 6962(d)(5) (large public works contracts). Last checked October 17, 2026.
Release. Upon completion of the work under the contract, the agency may release 60% of the amount then retained. The balance of the amount retained will be held until: A. All reports required of the contract are received; B. All subcontractors in trades listed on the bid form are paid by the contractor ... and C. Final payment is authorized by the agency.
Exemptions. Applies to large public works contracts under § 6962. If the project is late because of the contractor, the agency may forfeit all or part of retainage at its discretion. Securities may be substituted for retainage with agency approval.
Key sentence. The percentage retained shall be 5% of the value of the work completed by the contractor under the contract.
District of Columbia
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
10
D.C. Code § 2-203.01. Last checked October 17, 2026.
Release. whenever the work is substantially complete, the Mayor, if he considers the amount retained to be in excess of the amount adequate for the protection of the District of Columbia, at his discretion may release to the contractor all or a portion of such excess amount
Key sentence. On all contracts made by the District of Columbia for construction work there shall be withheld, until completion and acceptance of the work, a retent of 10 per centum of the total amount of any payments made thereunder as a guaranty fund that the terms of such contracts shall be strictly and faithfully performed
Florida
no statutory limit
Fla. Stat. § 715.12(7) (Construction Contract Prompt Payment Law) (last amended 2021). Last checked October 17, 2026.
Release. The owner shall pay the contractor the balance of the contract price, including the amounts withheld from the progress payments, within 14 days after any of the following events occur.
Interest or penalty. Any funds retained by the owner beyond the time period specified in this subsection shall accrue interest at the rate specified in subsection (5), computed from the date the payment is due to the date the payment is received by the contractor.
Exemptions. § 715.12(2): applies only to written contracts to improve real property entered into after December 31, 1992, for which a construction lien is authorized under part I of chapter 713.
Key sentence. An owner and a contractor may agree to a provision that allows the owner to withhold a portion of each progress payment until substantial completion of the entire project.
5
Fla. Stat. § 255.078 (public entities); also § 218.735(8) (local governmental entities) (last amended 2023). Last checked October 17, 2026.
Release. The same time limits for payment of a payment request apply regardless of whether the payment request is for, or includes, retainage.
Exemptions. § 255.078(5): does not apply to federally funded construction services subject to contrary federal requirements. § 255.078(6): does not apply if total contract cost is $200,000 or less. Chapter 2020-173 amendments do not apply to chapter 337 (transportation) contracts.
Key sentence. With regard to any contract for construction services, a public entity may withhold from each progress payment made to the contractor an amount not exceeding 5 percent of the payment as retainage.
Georgia
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Hawaii
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
5
HRS § 103-32.1 (last amended 2010). Last checked October 17, 2026.
Exemptions. Subs who give an acceptable bond or collateral may be retained at no more than the prime's percentage. Otherwise subcontracts may allow up to 10% retainage without cause (§ 103-32.1(e)(1)).
Key sentence. The sum withheld by the procurement officer from the contractor shall not exceed five per cent of the total amount due the contractor and that, after fifty per cent of the contract is completed and progress is satisfactory, no additional sum shall be withheld; provided further that if progress is not satisfactory, the procurement officer may continue to withhold, as retainage, sums not exceeding five per cent of the amount due the contractor; and
Idaho
5
Idaho Code § 29-115 (last amended 2025). Last checked October 17, 2026.
Release. Within thirty-five (35) days from the date of final completion of the work of improvement, the retention withheld by the owner shall be released, except in the event of a dispute between the owner and the original contractor, the owner may withhold from the final retention payment an amount not to exceed one hundred fifty percent (150%) of the estimated value of the issue in dispute.
Exemptions. The 5% maximum does not apply if the contractor or sub fails to provide a requested performance bond, or to private work on owner-occupied residential property of one to four units. Applies to contracts entered into on or after July 1, 1990.
Key sentence. In any contract relating to the construction of any private work of improvement, the retention proceeds withheld by the owner from the original contractor or by the original contractor from any subcontractor from any payment shall not exceed five percent (5%) of the payment and in no event shall the total retention withheld exceed five percent (5%) of the contract price.
5
Idaho Code § 54-1926(3) (last amended 2017). Last checked October 17, 2026.
Release. Further, the public body shall release to the contractor any retainage for those portions of the project accepted by the contracting public body and the contractors as complete within thirty (30) days after such acceptance.
Exemptions. Bond requirement applies to contracts of $50,000 or more. The 5% cap applies to public bodies requiring a performance or payment bond above 50% of the contract amount.
Key sentence. Public bodies requiring a performance bond or payment bond in excess of fifty percent (50%) of the total contract amount shall not be authorized to withhold from the contractor or subcontractor any amount exceeding five percent (5%) of the total amount payable as retainage.
Illinois
10 (until 50% complete), then 5
815 ILCS 603/20 (Contractor Prompt Payment Act); definitions 815 ILCS 603/5 (last amended 2019). Last checked October 17, 2026.
Exemptions. 603/5(b): 'construction contract' excludes contracts that require the expenditure of public funds and contracts for single family residences or multiple family residences with 12 or fewer units in a single building.
Key sentence. A construction contract may provide for the withholding of retainage of up to 10% of any payment made prior to the completion of 50% of the contract.
10 (until 50% complete), then 5
30 ILCS 550/1 (Public Construction Bond Act) (last amended 2024). Last checked October 17, 2026.
Exemptions. Applies to contractors who furnish the bond required by the Act (contracts over $150,000 until January 1, 2029; over $500,000 for IDOT and the Tollway; over $50,000 from January 1, 2029). Current text covers local governmental units. P.A. 104-168 (eff. 6-1-27) extends the cap to the State, except IDOT, and limits state-agency retainage to cases where satisfactory progress has not been achieved.
Key sentence. When a contract for public works is 50% complete, the local governmental unit shall reduce the retainage so that no more than 5% is held.
Indiana
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
6 (until 50% complete, then nothing further) or 3 (until substantial completion), at the owner's election
IC 36-1-12-14 (local boards); IC 4-13.6-7-3 (state public works division); IC 5-16-5.5-3.5 (state agencies). Last checked October 17, 2026.
Release. The board or escrow agent shall pay the contractor within sixty-one (61) days after the date of substantial completion, subject to sections 11 and 12 of this chapter.
Interest or penalty. The board shall not be required to pay interest on the amounts of retainage that it holds under this section.
Exemptions. IC 36-1-12-14(a): applies to public work contracts over $200,000 other than highways, roads, streets, alleys, bridges and related structures in rights-of-way; boards may require retainage provisions on contracts of $200,000 or less.
Key sentence. withhold no more than six percent (6%) of the dollar value of all work satisfactorily completed until the public work is fifty percent (50%) completed, and nothing further after that; or
Iowa
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
3
Iowa Code §§ 573.12, 573.14, 573.15A, 573.28 (last amended 2021). Last checked October 17, 2026.
Release. The fund provided for in section 573.13 shall be retained by the public corporation for a period of thirty days after the completion and final acceptance of the improvement.
Interest or penalty. failure to make payment pursuant to this section, of any amount due the contractor, within forty days, unless a greater time period not to exceed fifty days is specified in the contract documents, after the work under the contract has been completed ... shall cause interest to accrue on the amount unpaid to the benefit of the unpaid party.
Exemptions. § 573.14: the chapter does not apply where a federal contract or grant is governed by contrary federal law. § 573.15A and § 573.28 allow early release of retained funds (at 95% completion under § 573.15A).
Key sentence. The public corporation shall retain from each monthly payment not more than three percent of that amount that is determined to be due according to the estimate of the architect or engineer.
Kansas
5 (up to 10 if the owner or contractor determines a higher rate is required)
K.S.A. 16-1804 (Fairness in Private Construction Contract Act). Last checked October 17, 2026.
Release. An owner shall release all remaining retainage on any undisputed payment due to a contractor on a construction project within 30 days after substantial completion of the project; however, if any contractor or subcontractor is still performing work on the project, an owner may withhold that portion of the retainage attributable to such work until 30 days after such work is completed.
Interest or penalty. If an owner, contractor or subcontractor fails to pay retainage, if any, pursuant to the terms of a contract for private construction or as required by this act, the owner, contractor or subcontractor shall pay interest to the contractor or subcontractor to whom payment was due, beginning on the first business day after the payment was due, at a rate of 18% per annum.
Key sentence. Retainage shall not exceed 5% of the value of the contract or subcontract unless the owner or contractor determines that a higher rate of retainage is required to ensure performance of the contract.
5 (up to 10 if the owner or contractor determines a higher rate is required)
K.S.A. 16-1904 (Kansas Fairness in Public Construction Contract Act). Last checked October 17, 2026.
Release. An owner, contractor or subcontractor must release all remaining retainage on any undisputed payment due on a construction project within 30 days after substantial completion of the project as part of the regular payment cycle; however, if any contractor or subcontractor is still performing work on the project, an owner may withhold that portion of the retainage attributable to such work until 30 days after such work is completed.
Interest or penalty. If an owner, contractor or subcontractor fails to pay retainage, if any, pursuant to the terms of a contract for public construction or as required by this act, the owner, contractor or subcontractor shall pay interest to the contractor or subcontractor to whom payment was due, beginning on the first business day after the payment was due, at a rate of 18% per annum.
Exemptions. K.S.A. 16-1902(b): 'construction' does not include the design, construction, alteration, renovation, repair or maintenance of a road, highway or bridge.
Key sentence. Retainage shall not exceed 5% of the value of the contract or subcontract unless the owner or contractor determines that a higher rate of retainage is required to ensure performance of the contract.
Kentucky
10 (until 50% complete), then 5 of the total contract amount
KRS 371.410 (Kentucky Fairness in Construction Act, KRS 371.400-371.425) (last amended 2007). Last checked October 17, 2026.
Release. Within thirty (30) days after substantial completion of a construction project, the contracting entity or contractor shall release the retainage less an amount equal to two hundred percent (200%) of the contracting entity's reasonably estimated cost of the balance of any contractor's or subcontractor's contractually obligated, yet uncompleted, work remaining.
Interest or penalty. If a contracting entity, contractor, or subcontractor fails to pay retainage, if any, pursuant to the terms of a contract or as required in this section, the contracting entity, contractor, or subcontractor shall pay interest to the contractor or subcontractor to whom payment was due, beginning on the first business day after the payment was due, at the rate of twelve percent (12%) per annum.
Exemptions. KRS 371.425: applies to private construction excluding residential construction; not to Rural Utilities Service-financed contracts or KRS Chapter 278 facilities; applies to contracts entered into after June 26, 2007.
Key sentence. Notwithstanding any provision of the Kentucky Revised Statutes to the contrary, until fifty percent (50%) of the construction project has been completed in accordance with the contract, a contracting entity, contractor, or subcontractor may withhold no more than ten percent (10%) retainage from the amount of any undisputed payment due, and retainage held after fifty-one percent (51%) of the construction project has been completed shall not be more than five percent (5%) of the total contract amount.
10 (until 50% complete), then 5 of the total contract amount
KRS 371.410 (Kentucky Fairness in Construction Act, KRS 371.400-371.425) (last amended 2007). Last checked October 17, 2026.
Release. Within thirty (30) days after substantial completion of a construction project, the contracting entity or contractor shall release the retainage less an amount equal to two hundred percent (200%) of the contracting entity's reasonably estimated cost of the balance of any contractor's or subcontractor's contractually obligated, yet uncompleted, work remaining.
Interest or penalty. If a contracting entity, contractor, or subcontractor fails to pay retainage, if any, pursuant to the terms of a contract or as required in this section, the contracting entity, contractor, or subcontractor shall pay interest to the contractor or subcontractor to whom payment was due, beginning on the first business day after the payment was due, at the rate of twelve percent (12%) per annum.
Exemptions. KRS 371.425(1): applies to public construction and public works projects; not to Rural Utilities Service-financed contracts or KRS Chapter 278 facilities.
Key sentence. Notwithstanding any provision of the Kentucky Revised Statutes to the contrary, until fifty percent (50%) of the construction project has been completed in accordance with the contract, a contracting entity, contractor, or subcontractor may withhold no more than ten percent (10%) retainage from the amount of any undisputed payment due, and retainage held after fifty-one percent (51%) of the construction project has been completed shall not be more than five percent (5%) of the total contract amount.
Louisiana
no statutory limit
La. R.S. 9:4857. Last checked October 17, 2026.
Release. If there are no existing claims by the owner, the whole amount shall be paid to the contractor within three business days upon receipt by the escrow agent of a written release signed by the contractor and the owner.
Exemptions. Applies to owner-contractor contracts of $50,000 or more. Does not apply to single family or double family residences, or to listed industrial facilities (NAICS sectors including electric power generation, wood products, paper, petroleum and coal products, chemical, plastics and rubber, primary metals, landfills, bulk stations, pipelines, natural gas processing).
Key sentence. When, under the provisions of this Part, a contract in the amount of fifty thousand dollars or more is entered into between an owner and a contractor and if in accordance with the terms of such contract funds earned by the contractor are withheld as retainage by the owner from periodic payments due to the contractor then such funds shall be deposited by the owner into an interest bearing escrow account.
10 (projects under $500,000); 5 ($500,000 or more)
La. R.S. 38:2248 (public works); La. R.S. 48:256.1 (DOTD highway contracts) (last amended 2022). Last checked October 17, 2026.
Release. until the expiration of forty-five days after the recordation of formal acceptance of such work, or notice of default by the contractor or subcontractor
Exemptions. § 38:2248(B)(3): the section's provisions may not be waived and do not apply to the Department of Transportation and Development. DOTD retainage is under R.S. 48:256.1 (same 10%/5% split, release 45 days after notice of final acceptance is filed; no retainage if a retainage bond is furnished).
Key sentence. No contracts for the construction, alteration, or repair of any public works executed in conformity with this Part shall provide that the state or any of its agencies, boards, or subdivisions or any other public entity letting such a contract may withhold payment of more than ten percent of the contract price on projects of less than five hundred thousand dollars, and five percent of the contract price on projects of five hundred thousand dollars or more until the expiration of forty-five days after the recordation of formal acceptance of such work, or notice of default by the contractor or subcontractor.
Maine
no statutory limit
10 M.R.S. § 1116 (Prompt Payment Act, 10 M.R.S. §§ 1111-1120). Last checked October 17, 2026.
Release. If payments under a construction contract are subject to retainage, any amounts retained during the performance of the contract and due to be released to the contractor upon completion must be paid within 30 days after final acceptance of the work.
Interest or penalty. If a contractor or subcontractor unreasonably withholds acceptance of the work or materials or fails to pay retainage as required by this section, the owner, contractor or subcontractor is subject to the interest, penalty and attorney's fees provisions of this chapter.
Exemptions. § 1112 (Application) and § 1120 (Owner exclusion) limit scope; only their opening words were captured: '§1112. Application This chapter does not apply to contracts entered into by t...' and '§1120. Owner exclusion This chapter does not apply to contracts for the purch...'.
Key sentence. If payments under a construction contract are subject to retainage, any amounts retained during the performance of the contract and due to be released to the contractor upon completion must be paid within 30 days after final acceptance of the work.
5
5 M.R.S. § 1746 (last amended 2025). Last checked October 17, 2026.
Release. the State shall withhold 5% of the money due the contractor until the project under the contract has been accepted by or for the State, except that when the contract has been substantially completed the State may, upon request, further reduce the amounts withheld if it deems it desirable and prudent.
Key sentence. In any contract awarded for any public improvement the State shall withhold 5% of the money due the contractor until the project under the contract has been accepted by or for the State, except that when the contract has been substantially completed the State may, upon request, further reduce the amounts withheld if it deems it desirable and prudent.
Maryland
5 (when the contractor has furnished 100% performance and 100% payment security)
Md. Code, Real Prop. § 9-304. Last checked October 17, 2026.
Release. Undisputed retention proceeds retained by an owner under this section shall be paid within 90 days after the date of substantial completion, as defined by the applicable contract or subcontract.
Exemptions. § 9-304(b): does not apply to a contract in an amount less than $100,000, or to a project funded wholly or in part by or through the Department of Housing and Community Development.
Key sentence. The retention proceeds under the terms of a contract may not exceed 5% of the contract price; and
5 (when the contractor has furnished 100% payment and 100% performance security)
Md. Code, State Fin. & Proc. § 17-110. Last checked October 17, 2026.
Release. Except as provided in paragraph (4) of this subsection, within 120 days after satisfactory completion of a contract for construction, a public body shall release any retainage due to the contractor.
Exemptions. § 17-110(a): subsections (b)(1)-(2), (c) and (d) do not apply to an entity required to comply with § 13-225.
Key sentence. If a contractor has furnished 100% payment security and 100% performance security in accordance with this subtitle under a contract for construction awarded by a public body, the percentage specified in the contract for retainage may not exceed 5% of the total amount of the contract.
Massachusetts
5
M.G.L. c. 149, § 29F. Last checked October 17, 2026.
Release. Subject to subsection (g), an application for payment of retainage shall be paid not later than 30 days following submission of the application; provided, however, that the time period for payment of an application for retainage by the person at each tier of contract below the owner of the project may be extended by 7 days longer than the time period applicable to the person at the tier of contract above the person.
Exemptions. Applies only to a 'contract for construction' (lienable under c. 254) on a project where the prime's contract with the owner is at least $3,000,000. Excludes projects containing or designed to contain 1 to 4 dwelling units.
Key sentence. No contract for construction shall include retainage that exceeds 5 per cent of any progress payment.
5
M.G.L. c. 30, § 39K (public building construction). Last checked October 17, 2026.
Release. After the receipt of a periodic estimate requesting final payment and within sixty-five days after (a) the contractor fully completes the work or substantially completes the work so that the value of the work remaining to be done is, in the estimate of the awarding authority, less than one per cent of the original contract price, or (b) the contractor substantially completes the work and the awarding authority takes possession for occupancy, whichever occurs first, the awarding authority shall pay the contractor the entire balance due on the contract
Interest or penalty. If the awarding authority fails to make payment as herein provided, there shall be added to each such payment daily interest at the rate of three percentage points above the rediscount rate than charged by the Federal Reserve Bank of Boston commencing on the first day after said payment is due and continuing until the payment is delivered or mailed to the contractor
Exemptions. Applies to public building contracts over $5,000 (commonwealth) or over $2,000 (counties, cities, towns, districts, boards, commissions and other public bodies).
Key sentence. and less (3) a retention not exceeding five per cent of the approved amount of the periodic payment.
Michigan
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
10 (until work is 50% in place; no further retainage after that unless for cause)
MCL 125.1563 (Act 524 of 1980) (last amended 1983). Last checked October 17, 2026.
Release. Except as provided in section 4(7) and (8), retainage and interest earned on retainage shall be released to a contractor together with the final progress payment.
Interest or penalty. Retained funds must be deposited in an interest-bearing account and released with interest (§ 3(3)-(4)).
Exemptions. After 94% of the work is in place, retainage plus interest must be released on the contractor's request if the contractor provides an irrevocable letter of credit.
Key sentence. Not more than 10% of the dollar value of all work in place until work is 50% in place.
Minnesota
5
Minn. Stat. § 337.10, subd. 4 (last amended 2019). Last checked October 17, 2026.
Release. The owner or the owner's agent must release all retainage no later than 60 days after substantial completion subject to the terms of this subdivision.
Interest or penalty. The contract shall be deemed to require the party responsible for payment to pay interest of 1-1/2 percent per month to the party requesting payment on any undisputed amount not paid on time.
Exemptions. Subd. 4(g): does not apply to a public agency as defined in § 15.71, subd. 3. Subd. 4(h): does not apply to professional services contracts under §§ 326.02 to 326.15.
Key sentence. Retainage on a building and construction contract may not exceed five percent.
5
Minn. Stat. § 15.72, subd. 2; § 15.73 (last amended 2026). Last checked October 17, 2026.
Release. The public contracting agency must release all retainage no later than 60 days after substantial completion, subject to the terms of this subdivision.
Exemptions. § 15.73: at the contractor's option, bonds or securities may be deposited in lieu of cash retainage.
Key sentence. A public contracting agency may reserve as retainage from any progress payment on a public contract for a public improvement an amount not to exceed five percent of the payment.
Mississippi
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Missouri
10
RSMo § 436.303 (private construction, §§ 436.300-436.336) (last amended 2002). Last checked October 17, 2026.
Exemptions. § 436.336: applies to contracts entered into after August 28, 2002, on all private construction projects except single-family residential construction and other residential construction of four or fewer units.
Key sentence. A contract or agreement may include a provision for the retainage of a portion of any payment due from the owner to the contractor, not to exceed ten percent of the amount of such payment due pursuant to the contract or agreement, to ensure the proper performance of the contract or agreement, provided that the contract may provide that if the contractor's performance is not in accordance with the terms of the contract or agreement, the owner may retain additional sums to protect the owner's interest in satisfactory performance of the contract or agreement.
5 (10 if no bond is required because the contract is not estimated to exceed $50,000)
RSMo § 8.960 (formerly § 34.057, transferred 2022) (last amended 2022). Last checked October 17, 2026.
Release. The public owner shall pay at least ninety-eight percent of the retainage, less any offsets or deductions authorized in the contract or otherwise authorized by law, to the contractor.
Exemptions. Does not apply where contrary to federal funding requirements or where state grant funds are not timely received. 150% of the value of remaining minor items may be withheld when retainage is released.
Key sentence. Retainage withheld on any construction contract or subcontract for public works projects shall not exceed five percent of the value of the contract or subcontract.
Montana
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
5
MCA 18-2-316 (last amended 1999). Last checked October 17, 2026.
Exemptions. MCA 18-2-317: state agency energy performance contracts under Title 90, chapter 4, part 11 are exempt from this part.
Key sentence. The maximum retainage applied to construction contracts administered by the state of Montana or any department, agency, or political subdivision of the state of Montana, by any county, municipality, or political subdivision of a county or municipality, or by a school district may not exceed 5% if the contractor is performing by the terms of the contract.
Nebraska
10 (5 on later payments once 50% complete, with assurances)
Neb. Rev. Stat. §§ 45-1203, 45-1204, 45-1205 (Nebraska Construction Prompt Pay Act) (last amended 2014). Last checked October 17, 2026.
Release. The owner or the owner's representative shall release and pay all retainage for work completed in accordance with the provisions of the contract within forty-five days after the project, or a designated portion thereof, is substantially complete.
Interest or penalty. if a periodic or final payment to (1) a contractor is delayed by more than thirty days after receipt of a properly submitted periodic or final payment request by the owner or owner's representative ... then the remitting owner, contractor, or subcontractor shall pay the contractor or subcontractor interest due until such amount is paid, beginning on the day following the payment due date at the rate of one percent per month or a pro rata fraction thereof on the unpaid balance.
Key sentence. For retainage, in an amount not to exceed the amount specified in the applicable contract, which shall not exceed a rate of ten percent.
10 (5 on later payments once 50% complete, with assurances)
Neb. Rev. Stat. §§ 45-1203, 45-1204, 45-1205 (Nebraska Construction Prompt Pay Act) (last amended 2014). Last checked October 17, 2026.
Release. The owner or the owner's representative shall release and pay all retainage for work completed in accordance with the provisions of the contract within forty-five days after the project, or a designated portion thereof, is substantially complete.
Interest or penalty. if a periodic or final payment to (1) a contractor is delayed by more than thirty days after receipt of a properly submitted periodic or final payment request by the owner or owner's representative ... then the remitting owner, contractor, or subcontractor shall pay the contractor or subcontractor interest due until such amount is paid, beginning on the day following the payment due date at the rate of one percent per month or a pro rata fraction thereof on the unpaid balance.
Exemptions. § 45-1202: 'owner' includes political subdivisions but does not include the State of Nebraska; 'contractor' excludes work on State of Nebraska contracts and federal-aid or state-aid projects of political subdivisions paid by the state.
Key sentence. For retainage, in an amount not to exceed the amount specified in the applicable contract, which shall not exceed a rate of ten percent.
Nevada
5
NRS 624.609 (also NRS 624.624 for sub-tier). Last checked October 17, 2026.
Exemptions. Per a provision in NRS 624.609-624.622 read on the page: 'NRS 624.609 to 624.622, inclusive, do not apply to an agreement between: (a) A prime contractor and a natural person who owns a single-family residence for the performance of qualified services with respect to the residence; or (b) A public body and a prime contractor for the performance of work and labor on a public work.'
Key sentence. A retention amount that, if the owner is authorized to withhold a retention amount pursuant to the agreement, must not exceed 5 percent of the amount of the payment to be made;
5 (until 50% complete); after that 2.5 or 5 depending on § 338.525 withholding
NRS 338.515, 338.520 (last amended 2015). Last checked October 17, 2026.
Release. the public body shall pay or cause to be paid to the contractor any outstanding payment due, including, without limitation, retainage, and any interest accrued thereon within 30 days after whichever event described in subsection 1, 2 or 3 occurs first.
Interest or penalty. A public body shall pay or cause to be paid to the contractor at the end of each quarter interest for the quarter on any amount withheld by the public body pursuant to NRS 338.400 to 338.645, inclusive, at a rate equal to the rate quoted by at least three insured banks, credit unions, savings and loan associations or savings banks in this State as the highest rate paid on a certificate of deposit whose duration is approximately 90 days on the first day of the quarter.
Key sentence. Ninety-five percent of the amount of any progress payment must be paid and 5 percent withheld as retainage until 50 percent of the work required by the contract has been performed.
New Hampshire
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
no statutory limit
RSA 21-I:20. Last checked October 17, 2026.
Exemptions. Applies to state agency contracts exceeding $500,000 on which the agency withholds a percentage until acceptance.
Key sentence. Under any contract made or awarded by a state agency which exceeds a total of $500,000 and on which a state agency withholds a percentage of the money due the contractor until the state agency has accepted the contract, the contractor may withdraw the whole or a portion of the amount retained under the following conditions:
New Jersey
no statutory limit
N.J.S.A. 2A:30A-2 (Prompt Payment Act) (last amended 2006). Last checked October 17, 2026.
Release. the owner shall pay the amount due to the prime contractor for each periodic payment, final payment or retainage monies not more than 30 calendar days after the billing date, which for a periodic billing, shall be the periodic billing date specified in the contract.
Interest or penalty. If a payment due pursuant to the provisions of this section is not made in a timely manner, the delinquent party shall be liable for the amount of money owed under the contract, plus interest at a rate equal to the prime rate plus 1%.
Exemptions. Subsection (c) interest and (d) suspension rights do not apply to certain federally funded transportation projects. § 2A:30A-2(e)(2) preserves resident homeowners' other rights.
Key sentence. If a prime contractor has performed in accordance with the provisions of a contract with the owner and the billing for the work has been approved and certified by the owner or the owner's authorized approving agent, the owner shall pay the amount due to the prime contractor for each periodic payment, final payment or retainage monies not more than 30 calendar days after the billing date, which for a periodic billing, shall be the periodic billing date specified in the contract.
2
N.J.S.A. 40A:11-16.3 (local contracting units) (last amended 1999). Last checked October 17, 2026.
Release. Upon acceptance of the work performed pursuant to the contract for which the contractor has agreed to the withholding of payments pursuant to subsection a. of this section, all amounts being withheld by the contracting unit shall be released and paid in full to the contractor within 45 days of the final acceptance date agreed upon by the contractor and the contracting unit, without further withholding of any amounts for any purpose whatsoever, provided that the contract has been completed as indicated.
Exemptions. Applies to local contracting-unit contracts under § 40A:11-16.2 where the contractor agrees to withholding under § 40A:11-16.1. State contracts (N.J.S.A. 52:32 et seq.), school districts (18A:18A-40.3) and DOT (27:7-34) were not read.
Key sentence. With respect to any contract entered into by a contracting unit pursuant to section 1 of P.L.1979, c.464 (C.40A:11-16.2) for which the contractor shall agree to the withholding of payments pursuant to P.L.1979, c.152 (C.40A:11-16.1), 2% of the amount due on each partial payment shall be withheld by the contracting unit pending completion of the contract.
New Mexico
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
New York
5
N.Y. Gen. Bus. Law § 756-c (Article 35-E) (last amended 2023). Last checked October 17, 2026.
Release. Retainage shall be released by the owner to the contractor no later than thirty days after the final approval of the work under a construction contract.
Interest or penalty. In the event that an owner fails to release retainage as required by this article, or the contractor or subcontractor fails to release a proportionate amount of retainage to the relevant parties after receipt of retainage from the owner, the owner, contractor, or subcontractor, as the case may be, shall be subject to the payment of interest at the rate of one percent per month on the date retention was due and owing.
Key sentence. By mutual agreement of the relevant parties an owner may retain no more than five per centum of the contract sum as retainage.
5 (up to 10 if no full performance and labor-and-material bonds are required)
N.Y. State Fin. Law § 139-f (state and public authorities); N.Y. Gen. Mun. Law § 106-b (political subdivisions) (last amended 2021). Last checked October 17, 2026.
Release. Upon receipt of such requisition the public owner shall approve and promptly pay the remaining amount of the contract balance less two times the value of any remaining items to be completed and an amount necessary to satisfy any claims, liens or judgments against the contractor which have not been suitably discharged.
Exemptions. § 139-f excepts the provisions of section 38 of the highway law.
Key sentence. The public owner shall retain not more than five per centum of each progress payment to the contractor except that the public owner may retain in excess of five per centum but not more than ten per centum of each progress payment to the contractor provided that there are no requirements by the public owner for the contractor to provide a performance bond and a labor and material bond both in the full amount of the contract.
North Carolina
no statutory limit
N.C. Gen. Stat. Chapter 22C (Payments to Subcontractors); quoted provision (1987, c. 946) (last amended 1988). Last checked October 17, 2026.
Key sentence. Nothing in this Chapter shall prevent the contractor, at the time of application and certification to the owner, from withholding such application and certification to the owner for payment to the subcontractor for: unsatisfactory job progress; defective construction not remedied; disputed work; third party claims filed or reasonable evidence that claim will be filed; failure of subcontractor to make timely payments for labor, equipment, and materials; damage to contractor or another subcontractor; reasonable evidence that subcontract cannot be completed for the unpaid balance of the subcontract sum; or a reasonable amount for retainage not to exceed the initial percentage retained by the owner.
5 (none on projects under $150,000; none further after 50% complete if performance is satisfactory)
N.C. Gen. Stat. § 143-134.1(b1). Last checked October 17, 2026.
Release. Within 60 days after the submission of a pay request and one of the following occurs, as specified in the contract documents, the owner with written consent of the surety shall release to the contractor all retainage on payments held by the owner: (i) the owner receives a certificate of substantial completion from the architect, engineer, or designer in charge of the project; or (ii) the owner receives beneficial occupancy or use of the project.
Interest or penalty. Should final payment to any prime contractor beyond the date the contracts have been certified to be completed by the designer or architect, accepted by the owner, or occupied by the owner and used for the purposes for which the project was constructed, be delayed by more than 45 days, the prime contractor shall be paid interest, beginning on the 46th day, at the rate of one percent (1%) per month or fraction thereof unless a lower rate is agreed upon on the unpaid balance as may be due.
Exemptions. No retainage on public construction contracts with total project costs under $150,000. § 143-134.1(a) excludes Department of Transportation contracts let under G.S. 136-28.1.
Key sentence. The owner shall not retain more than five percent (5%) of any periodic payment due a prime contractor.
North Dakota
10 (until 50% complete, then no further retainage)
N.D.C.C. § 43-07-23. Last checked October 17, 2026.
Interest or penalty. If the owner, governing board, or authorized committee invests the retained estimate funds, the interest earned on those retained funds is payable at the time of final payment on the contract to the contractor on whose account the moneys were held.
Exemptions. Excludes contracts subject to § 40-22-37 or § 48-01.2-13 (public) and contracts governed by federal statutes or regulations requiring other retention provisions.
Key sentence. retention of ten percent of each estimate presented is allowable until such time as the project is fifty percent complete, with no further retainage on estimates during the continuance of the contract.
10 (until 50% complete, then no further retainage unless unsatisfactory progress is documented)
N.D.C.C. § 48-01.2-13 (also § 40-22-37 for municipal special assessment projects). Last checked October 17, 2026.
Release. The governing body may, upon completion of ninety-five percent of the contract, pay to the contractor up to ninety-five percent of the amount retained from previous estimates. The remaining amount retained must be paid to the contractor in the amounts and at the times approved by the architect or engineer.
Key sentence. A partial payment estimate must include retentions or retainage as follows: ten percent of each estimate until the project is fifty percent completed with no further retainage on estimates during the continuance of the contract unless unsatisfactory progress or performance is documented.
Ohio
no statutory limit
Ohio Rev. Code § 4113.61 (last amended 2011). Last checked October 17, 2026.
Release. If a contractor receives any final retainage from the owner for improvements to property, the contractor shall pay from that retainage each subcontractor and material supplier the subcontractor's or material supplier's proportion of the retainage, within ten calendar days after receipt of the retainage from the owner, or within the time period provided in a contract, invoice, or purchase order between the contractor and the subcontractor or material supplier, whichever time period is shorter, provided that the contractor has determined that the subcontractor's or material supplier's work, labor, and materials have been satisfactorily performed or furnished and that the owner has approved the subcontractor's or material supplier's work, labor, and materials.
Interest or penalty. If the contractor fails to pay a subcontractor or material supplier within the appropriate time period, the contractor shall pay the subcontractor or material supplier, in addition to the retainage due, interest in the amount of eighteen per cent per annum of the retainage due, beginning on the eleventh day following the receipt of the retainage from the owner and ending on the date of full payment of the retainage due plus interest to the subcontractor or material supplier.
Key sentence. The contractor may reduce the amount paid by any retainage provision contained in the contract, invoice, or purchase order between the contractor and the subcontractor or material supplier, and may withhold amounts that may be necessary to resolve disputed liens or claims involving the work or labor performed or material furnished by the subcontractor or material supplier.
4 (partial payments at not less than 96% of estimates)
Ohio Rev. Code §§ 153.12, 153.13, 153.14 (last amended 2026). Last checked October 17, 2026.
Release. When the major portion of the project is substantially completed and occupied, or in use, or otherwise accepted, and there exists no other reason to withhold retainage, the retained percentages held in connection with such portion and interest thereon accrued shall, within thirty days of substantial completion of, occupation of, use of, or acceptance of the project, be paid to the primary contractor, withholding only that amount reasonably necessary to assure final completion of the project.
Interest or penalty. Upon the failure of the owner or its representative to make such payments within thirty days, or upon an unauthorized withholding of retainage, there shall be allowed to the contractor, in addition to any other remedies allowed by law, interest on such moneys not paid within thirty days.
Exemptions. Nothing in §§ 153.13 or 153.14 limits the authority of the director of transportation under Chapter 5525.
Key sentence. Partial payments to the contractor for labor performed under either a unit or lump sum price contract shall be made at a rate of not less than ninety-six per cent of the estimates prepared by the contractor and approved by the architect or engineer.
Oklahoma
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
5 (reduced to 2.5 after 50% complete with satisfactory progress)
61 O.S. § 226 (Fair Pay for Construction Act); 61 O.S. § 113.1 (Public Competitive Bidding Act) (last amended 2022). Last checked October 17, 2026.
Release. No later than twenty-one (21) calendar days after a certificate of substantial completion is issued for the project or separate usable phase of the project and upon adequate performance of the prime contractor and with approval of any applicable surety, retainage shall be released by the owner to the prime contractor less an amount no greater than one hundred fifty percent (150%) of the estimated costs to correct any incomplete or defective work as identified, itemized, and attached to the certificate of substantial completion.
Exemptions. 61 O.S. § 113.1(B)-(C): the Department of Transportation and the Oklahoma Turnpike Authority shall not withhold retainage on contracts they award; no retainage or bond on DOT projects awarded to railroads on railroad-owned property.
Key sentence. The contract shall provide that up to five percent (5%) of all partial payments made shall be withheld as retainage.
Oregon
5
ORS 701.410, 701.420 (also 701.430-701.440) (last amended 2024). Last checked October 17, 2026.
Release. The interest shall commence 30 days after the contractor or subcontractor has completed and the owner has accepted the work under the contract for construction for which the final payment is due.
Interest or penalty. The owner, contractor or subcontractor shall pay interest at the rate of one percent per month on the final payment due the contractor or subcontractor.
Exemptions. § 701.420(1) applies to 'contracts for construction and home improvement'. § 701.435 surety bond in lieu of retainage applies to large commercial structures and public improvement contracts.
Key sentence. An owner, contractor or subcontractor may withhold as retainage an amount equal to not more than five percent of the contract price of the work completed.
5
ORS 279C.555 (applies ORS 701.420 to public improvements); ORS 279C.570(7) (last amended 2024). Last checked October 17, 2026.
Release. The interest shall commence 30 days after the contractor or subcontractor has completed and the owner has accepted the work under the contract for construction for which the final payment is due.
Interest or penalty. The owner, contractor or subcontractor shall pay interest at the rate of one percent per month on the final payment due the contractor or subcontractor.
Exemptions. § 279C.570(1): no contracting agency is exempt from the prompt payment section.
Key sentence. An owner, contractor or subcontractor may withhold as retainage an amount equal to not more than five percent of the contract price of the work completed.
Pennsylvania
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
10 (until 50% complete; half returned at 50%; then 5 of completed work); Department of General Services 6, then 3
62 Pa.C.S. §§ 3921, 3941 (Commonwealth Procurement Code). Last checked October 17, 2026.
Release. If the work is substantially completed, the architect or engineer shall issue a certificate of completion and a final certificate for payment, and the government agency shall make payment in full within 45 days except as provided in section 3921, less only one and one-half times the amount required to complete any then-remaining uncompleted minor items, which amount shall be certified by the architect or engineer and, upon receipt by the government agency of any guarantee bonds which may be required, in accordance with the contract, to insure proper workmanship for a designated period of time.
Interest or penalty. The final payment due the contractor from the government agency after substantial completion of the contract shall bear interest at a rate of 6% per annum for all contracts without provisions for retainage and at a rate of 10% per annum for all contracts with provisions for retainage, the interest to begin after the date that such payment becomes due and payable to the contractor.
Key sentence. A contract may include a provision for the retainage of a portion of the amount due the contractor to insure the proper performance of the contract except that the sum withheld by the government agency from the contractor shall not exceed 10% of the amount due the contractor until 50% of the contract is completed.
Rhode Island
5
R.I. Gen. Laws § 37-12-10.1. Last checked October 17, 2026.
Exemptions. Applies to a 'contract for construction' as defined in § 5-65-1 (definition not read).
Key sentence. No contract for construction, as defined in § 5-65-1, or for state or municipal public works projects, as defined in this title, excluding contracts under § 37-12-10, shall include retainage that exceeds five percent (5%) of any progress payment.
5
R.I. Gen. Laws § 37-12-10.1; § 37-12-10 (public works, sewer and water main contracts under $500,000) (last amended 2024). Last checked October 17, 2026.
Exemptions. § 37-12-10: for contracts under $500,000 for sewers, water mains or public works projects, the awarding authority may deduct a retention of up to 5% upon substantial completion, plus police traffic-control costs.
Key sentence. No contract for construction, as defined in § 5-65-1, or for state or municipal public works projects, as defined in this title, excluding contracts under § 37-12-10, shall include retainage that exceeds five percent (5%) of any progress payment.
South Carolina
no statutory limit
S.C. Code § 29-6-40 (Prompt payment, S.C. Code §§ 29-6-10 et seq.). Last checked October 17, 2026.
Key sentence. Nothing in this chapter prevents the owner, the contractor, or a subcontractor from withholding application and certification for payment because of the following: unsatisfactory job progress, defective construction not remedied, disputed work, third party claims filed or reasonable evidence that claim will be filed, failure of contractor or subcontractor to make timely payments for labor, equipment, and materials, damage to owner, contractor, or another subcontractor, reasonable evidence that contract or subcontract cannot be completed for the unpaid balance of the contract or subcontract sum, or a reasonable amount for retainage.
3.5
S.C. Code § 11-35-3030. Last checked October 17, 2026.
Release. As each division of the contract is certified as having been completed, that portion of the retained funds which is allocable to the completed division of the contract must be released forthwith to the prime contractor, who, within ten days of its receipt, shall release to the subcontractor responsible for the completed work the full amount of retention previously withheld from him by the prime contractor.
Key sentence. In a contract or subcontract for construction which provides for progress payments in installments based upon an estimated percentage of completion, with a percentage of the contract's proceeds to be retained by the State or general contractor pending completion of the contract or subcontract, the retained amount of each progress payment or installment must be no more than three and one-half percent.
South Dakota
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
no statutory limit
SDCL 5-18B-11 (public improvements); SDCL 7-25-10 (county buildings). Last checked October 17, 2026.
Release. The contract may permit progress payments, but an amount necessary to complete the improvement shall be retained from the final payment until the contract is executed in full and the public improvement completed to the satisfaction and acceptance of the purchasing agency.
Interest or penalty. However, if the contractor has furnished the purchasing agency all required records and reports and a final inspection has been made, the purchasing agency shall pay to the contractor interest as set by the governing body at a rate of not less than the category E rate of interest as established by § 54-3-16 on the amounts retained and on the final payment due the contractor beginning thirty days after the work under the contract has been completed
Exemptions. SDCL 7-25-10 (county buildings) requires retention of NOT LESS THAN 12% of the first $50,000, 5% of the next $200,000 and 2.5% above $250,000. That is a minimum, not a cap.
Key sentence. The contract may permit progress payments, but an amount necessary to complete the improvement shall be retained from the final payment until the contract is executed in full and the public improvement completed to the satisfaction and acceptance of the purchasing agency.
Tennessee
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Texas
no statutory limit (owner must reserve 10%)
Tex. Prop. Code § 53.101 (mandatory reserve, mechanic's lien chapter) (last amended 2022). Last checked October 17, 2026.
Release. During the progress of work under an original contract for which a mechanic's lien may be claimed and for 30 days after the work under the contract is completed, the owner shall reserve:
Exemptions. Applies to original contracts for which a mechanic's lien may be claimed.
Key sentence. 10 percent of the contract price of the work to the owner; or
10 (contracts under $5 million and dam contracts); 5 (contracts of $5 million or more)
Tex. Gov't Code § 2252.032 (last amended 2021). Last checked October 17, 2026.
Release. A governmental entity may not withhold retainage: (1) after completion of the work required to be performed under the contract by the prime contractor, including during the warranty period;
Exemptions. § 2252.032(i): subsection (b) caps do not apply to Texas Water Development Board-financed projects formally approved before September 1, 2019, or to certain wholesale water suppliers serving 10 or more counties (which must escrow retainage above 5%). § 2252.032(c): contracts of $10 million or more may use an interest-bearing account.
Key sentence. if the total value of a public works contract is $5 million or more, a governmental entity may not withhold retainage in an amount that exceeds five percent of the contract price and the rate of retainage may not exceed five percent for any item in a bid schedule or schedule of values for the project, including materials and equipment delivered on site to be installed; and
Utah
5
Utah Code § 13-8-5. Last checked October 17, 2026.
Release. Any retention proceeds retained or withheld pursuant to this section and any accrued interest shall be released pursuant to a billing statement from the contractor within 45 days from the later of:
Interest or penalty. In any action for the collection of the retained proceeds withheld and retained in violation of this section, the successful party is entitled to: (i) attorney fees; and (ii) other allowable costs.
Exemptions. Applies to nonresidential commercial or industrial construction projects; mixed projects only pro rata to the nonresidential share (§ 13-8-5(1)(a)). Applies to contracts entered on or after July 1, 1999; not to construction lenders.
Key sentence. Notwithstanding Section 58-55-603, the retention proceeds withheld and retained from any payment due under the terms of the construction contract may not exceed 5% of the payment:
5
Utah Code § 13-8-5. Last checked October 17, 2026.
Release. Any retention proceeds retained or withheld pursuant to this section and any accrued interest shall be released pursuant to a billing statement from the contractor within 45 days from the later of:
Interest or penalty. In any action for the collection of the retained proceeds withheld and retained in violation of this section, the successful party is entitled to: (i) attorney fees; and (ii) other allowable costs.
Exemptions. 'Public agency' includes any state agency, county, city, town, school district, special district and other political subdivision (§ 13-8-5(1)(g)). The nonresidential scope language in (1)(a) also applies.
Key sentence. Notwithstanding Section 58-55-603, the retention proceeds withheld and retained from any payment due under the terms of the construction contract may not exceed 5% of the payment:
Vermont
no statutory limit
9 V.S.A. § 4005 (Prompt Pay Act, 9 V.S.A. ch. 102) (last amended 2017 (Adj. Sess.)). Last checked October 17, 2026.
Release. If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.
Interest or penalty. If an owner, contractor, or subcontractor unreasonably withholds acceptance of the work or fails to pay retainage as required by this section, the owner, contractor, or subcontractor shall be subject to the interest, penalty, and attorney’s fees provisions of sections 4002, 4003, and 4007 of this title.
Exemptions. § 4005(e): no retainage may be held on delivered and accepted contracted materials covered by a manufacturer's warranty or graded to industry standards, except where the materialman also installs.
Key sentence. If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.
no statutory limit
9 V.S.A. § 4005 (Prompt Pay Act, 9 V.S.A. ch. 102) (last amended 2017 (Adj. Sess.)). Last checked October 17, 2026.
Release. If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.
Interest or penalty. If an owner, contractor, or subcontractor unreasonably withholds acceptance of the work or fails to pay retainage as required by this section, the owner, contractor, or subcontractor shall be subject to the interest, penalty, and attorney’s fees provisions of sections 4002, 4003, and 4007 of this title.
Exemptions. § 4005(e): no retainage may be held on delivered and accepted contracted materials covered by a manufacturer's warranty or graded to industry standards, except where the materialman also installs.
Key sentence. If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.
Virginia
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
5
Va. Code § 2.2-4333 (also § 2.2-4334) (last amended 2001). Last checked October 17, 2026.
Release. All amounts withheld may be included in the final payment.
Exemptions. § 2.2-4334: local governments contracting for $200,000 or more for highways, roads, streets, bridges, parking lots, site work and utility lines must offer an escrow option for retainage. It excludes railroads, transit, runways, dams, foundations, power systems, telephone and signal systems, solid waste and recycling facilities, and treatment plants.
Key sentence. In any public contract for construction that provides for progress payments in installments based upon an estimated percentage of completion, the contractor shall be paid at least ninety-five percent of the earned sum when payment is due, with no more than five percent being retained to ensure faithful performance of the contract.
Washington
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
5
RCW 60.28.011. Last checked October 17, 2026.
Release. Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapter 39.12 RCW and this chapter.
Interest or penalty. Deposited by the public body in an interest bearing account in a bank, mutual savings bank, or savings and loan association. Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor;
Exemptions. § 60.28.011(1)(a) begins 'Except as provided in (b) of this subsection'; subsection (1)(b) was not captured. Landscaping: after all other work is complete, 5% may continue to be retained on landscaping.
Key sentence. Except as provided in (b) of this subsection, public improvement contracts must provide, and public bodies must reserve, a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of: (i) The claims of any person arising under the contract; and (ii) the state with respect to taxes, increases, and penalties imposed pursuant to Titles 50, 51, and 82 RCW which may be due from such contractor.
West Virginia
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Wisconsin
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
5 (until 50% complete; total up to 10 if progress is unsatisfactory)
Wis. Stat. § 66.0901(9)(b) (municipalities); § 16.855 (state, not read) (last amended 2021). Last checked October 17, 2026.
Release. Upon substantial completion of the work, an amount retained may be paid to the contractor.
Exemptions. Applies to municipal contracts of $1,000 or more for public works, buildings, supplies or materials.
Key sentence. The retainage shall be an amount equal to not more than 5 percent of the estimate until 50 percent of the work has been completed.
Wyoming
No retainage statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
5
Wyo. Stat. § 16-6-702(b); § 16-6-116(a). Last checked October 17, 2026.
Release. Upon the forty-first day after the notice required under paragraph (ii) of this subsection was first published and posted, the public entity under whose direction or supervision the work has been carried on shall pay to the general contractor any payment retained by the public entity under W.S. 16-6-702(b) together with any other amount due under the contract, less any amount withheld for the portion of the public work that is incomplete or not completed in accordance with the contract and associated documents;
Exemptions. § 16-6-706: the act does not apply where federal or other funding sources impose inconsistent retention requirements. § 16-6-704: on contracts over $50,000 the contractor can require an interest-bearing deposit agreement.
Key sentence. In all contracts with a public entity for a public work, the public entity may retain no more than five percent (5%) of the calculated value of any work completed as retainage.
Pay if paid and pay when paid by state
Void means the state's statute makes a pay if paid clause unenforceable. Limited means the statute restricts it, for example by protecting lien or bond rights. No statute found means none turned up in the sections checked.
| State | Private work | Public work |
|---|---|---|
| Alabama | No statute found | No statute found |
| Alaska | No statute found | No statute found |
| Arizona | No statute found | No statute found |
| Arkansas | Not verified yet | Not verified yet |
| California | No statute found | No statute found |
| Colorado | Not verified yet | Not verified yet |
| Connecticut | No statute found | No statute found |
| Delaware | Void | No statute found |
| District of Columbia | Not verified yet | No statute found |
| Florida | No statute found | No statute found |
| Georgia | Not verified yet | Not verified yet |
| Hawaii | Limited | No statute found |
| Idaho | No statute found | No statute found |
| Illinois | Limited | Limited |
| Indiana | Limited | No statute found |
| Iowa | No statute found | Limited |
| Kansas | Limited | No statute found |
| Kentucky | No statute found | No statute found |
| Louisiana | No statute found | No statute found |
| Maine | No statute found | No statute found |
| Maryland | Limited | Limited |
| Massachusetts | Void | No statute found |
| Michigan | Not verified yet | No statute found |
| Minnesota | No statute found | No statute found |
| Mississippi | Not verified yet | Not verified yet |
| Missouri | No statute found | No statute found |
| Montana | No statute found | No statute found |
| Nebraska | No statute found | No statute found |
| Nevada | Limited | No statute found |
| New Hampshire | No statute found | No statute found |
| New Jersey | No statute found | No statute found |
| New Mexico | Not verified yet | Not verified yet |
| New York | No statute found | No statute found |
| North Carolina | Void | Void |
| North Dakota | No statute found | No statute found |
| Ohio | No statute found | No statute found |
| Oklahoma | No statute found | No statute found |
| Oregon | No statute found | No statute found |
| Pennsylvania | Not verified yet | No statute found |
| Rhode Island | No statute found | No statute found |
| South Carolina | Void | Void |
| South Dakota | No statute found | No statute found |
| Tennessee | Not verified yet | Not verified yet |
| Texas | Limited | Limited |
| Utah | No statute found | No statute found |
| Vermont | No statute found | No statute found |
| Virginia | Void | Void |
| Washington | No statute found | No statute found |
| West Virginia | No statute found | No statute found |
| Wisconsin | Void | No statute found |
| Wyoming | No statute found | No statute found |
Days to pay by state
The days the statute gives the owner to pay the contractor and the contractor to pay the subcontractor. Most states let the contract set other terms, and long entries say "See statute" with the full wording in the state's section below.
| State | Owner to contractor, private | Contractor to sub, private | Owner to contractor, public | Contractor to sub, public |
|---|---|---|---|---|
| Alabama | 30 (if no agreed terms) | 7 (if no agreed terms) | See statute | Not set by statute |
| Alaska | No statute found | No statute found | See statute | 8 working days |
| Arizona | See statute | 7 | See statute | See statute |
| Arkansas | Not verified yet | Not verified yet | Not verified yet | Not verified yet |
| California | See statute | See statute | 30 | 7 |
| Colorado | Not verified yet | Not verified yet | Not verified yet | Not verified yet |
| Connecticut | 30 | 25 | Not set by statute | 30 |
| Delaware | See statute | See statute | No statute found | No statute found |
| District of Columbia | Not verified yet | Not verified yet | See statute | 7 |
| Florida | See statute | See statute | See statute | See statute |
| Georgia | Not verified yet | Not verified yet | Not verified yet | Not verified yet |
| Hawaii | Not set by statute | 10 | 30 calendar days | 10 |
| Idaho | See statute | See statute | See statute | Not set by statute |
| Illinois | See statute | 15 calendar days | See statute | See statute |
| Indiana | Not set by statute | Not set by statute | See statute | 10 (state public works) |
| Iowa | Not set by statute | See statute | See statute | 7 |
| Kansas | 30 | 7 business days | See statute | 7 business days |
| Kentucky | 30 business days | 15 business days | See statute | 15 business days |
| Louisiana | See statute | 7 | See statute | Not set by statute |
| Maine | See statute | 7 | See statute | 7 |
| Maryland | See statute | 7 | See statute | 10 |
| Massachusetts | See statute | See statute | See statute | See statute |
| Michigan | Not verified yet | Not verified yet | See statute | Not set by statute |
| Minnesota | See statute | 10 | See statute | 10 |
| Mississippi | Not verified yet | Not verified yet | Not verified yet | Not verified yet |
| Missouri | See statute | See statute | 30 | 15 |
| Montana | See statute | 7 | See statute | 7 |
| Nebraska | 30 | 10 | See statute | 10 |
| Nevada | See statute | See statute | Not set by statute | 10 |
| New Hampshire | No statute found | No statute found | No statute found | No statute found |
| New Jersey | See statute | See statute | See statute | 10 calendar days |
| New Mexico | Not verified yet | Not verified yet | Not verified yet | Not verified yet |
| New York | See statute | 7 | See statute | 7 calendar days |
| North Carolina | Not set by statute | 7 | See statute | 7 |
| North Dakota | No statute found | No statute found | See statute | See statute |
| Ohio | Not set by statute | 10 calendar days | See statute | 10 calendar days |
| Oklahoma | No statute found | No statute found | See statute | See statute |
| Oregon | See statute | 7 (calendar days) | See statute | 10 |
| Pennsylvania | Not verified yet | Not verified yet | See statute | 14 |
| Rhode Island | See statute | See statute | See statute | 7 |
| South Carolina | See statute | 7 | See statute | 7 |
| South Dakota | No statute found | No statute found | See statute | 30 |
| Tennessee | Not verified yet | Not verified yet | Not verified yet | Not verified yet |
| Texas | See statute | 7 | See statute | 10 |
| Utah | No statute found | No statute found | See statute | 30 |
| Vermont | See statute | 7 | See statute | 7 |
| Virginia | See statute | See statute | See statute | See statute |
| Washington | No statute found | No statute found | See statute | 10 |
| West Virginia | No statute found | No statute found | No statute found | No statute found |
| Wisconsin | Not set by statute | Not set by statute | See statute | 7 |
| Wyoming | No statute found | No statute found | See statute | Not set by statute |
Each state, with the payment statute
Alabama
Pay if paid: No statute found
Ala. Code §§ 8-29-1 to 8-29-6 (8-29-3). Last checked October 17, 2026.
Pay when paid and timing. Default timing only: when no terms are agreed, contractor pays sub within 7 days of receipt of owner payment
Owner pays the contractor. 30 (if no agreed terms)
Contractor pays the sub. 7 (if no agreed terms)
What starts the clock. Owner: receipt of pay request or invoice. Sub: receipt of payment from owner.
Interest or penalty. 1% per month (12% per annum); attorneys' fees to prevailing party (8-29-6)
Key sentence. the contractor shall timely pay to the subcontractor in accordance with the payment terms agreed to by the contractor and subcontractor, but if payment terms are not agreed to, then within seven days of receipt of payment from owner
Notes. Agreed payment terms control; the statutory days are defaults. 8-29-3(e) separately says the contractor's payment of the sub's share of an owner payment 'shall be made not later than the seventh day after the date the contractor receives the owner's payment.' Chapter 8-29 has no section on pay-if-paid clauses; Alabama case law on contingent payment was not read. Act 95-380.
Pay if paid: No statute found
Ala. Code § 39-2-12. Last checked October 17, 2026.
Owner pays the contractor. 35 (partial and final payments)
What starts the clock. Partial: acceptance by the awarding authority that the estimate and contract terms are fulfilled. Final: completion, acceptance, and presentation of voucher, release and proof of advertisement.
Interest or penalty. Interest at the rate for underpayment of taxes under § 40-1-44(a); attorneys' fees to prevailing party
Exemptions. Contracts administered by the Alabama Building Commission (interest and fee provisions); agencies under Title 33 ch. 1; disaster response contracts; grant-funded contracts until funds are received
Key sentence. Unless otherwise provided in the specifications, partial payments shall be made as the work progresses at the end of each calendar month, but in no case later than 35 days after the acceptance by the awarding authority that the estimate and terms of the contract providing for partial payments have been fulfilled.
Notes. Designated reviewer must respond within 10 days (20 for ALDOT). Agreements to extend the 35-day period after contract execution are unenforceable. § 39-2-12 sets no sub payment deadline; whether ch. 8-29 also applies to public owners was not determined. Last amended Act 2014-404.
Alaska
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Checked AS 36.90.200-36.90.250, which apply only to public construction or public works contracts. No private prompt-payment statute was located; the lien chapter (AS 34.35) was not searched for payment-timing language.
Pay if paid: No statute found
AS 36.90.200, 36.90.210. Last checked October 17, 2026.
Pay when paid and timing. Sub must be paid within 8 working days after the prime receives the payment the sub is to be paid from (required subcontract clause)
Owner pays the contractor. 30 calendar days (21 days after receipt of grant or federal money, if later)
Contractor pays the sub. 8 working days
What starts the clock. Owner: receipt of a compliant payment request. Sub: prime's receipt of payment.
Interest or penalty. Interest at the AS 45.45.010(a) rate
Exemptions. 36.90.200 does not apply to political subdivisions with population under 800; interest obligation in 36.90.200 does not apply to retainage
Key sentence. the subcontractor for satisfactory performance under the subcontract within eight working days after receiving payment from which the subcontractor is to be paid;
Notes. Owner must give written notice within 8 working days of any withholding. Owner interest under 36.90.200(b) runs from the 21st calendar day after the payment due date. Withholding for unsatisfactory performance allowed with notice (36.90.220-.240). Read via the print view for secStart 36.90.200 to secEnd 36.90.250.
Arizona
Pay if paid: No statute found
A.R.S. §§ 32-1181 to 32-1187 (32-1182, 32-1183). Last checked October 17, 2026.
Pay when paid and timing. Sub paid within 7 days of contractor's receipt of each progress payment, retention release or final payment
Owner pays the contractor. 7 days after the billing is certified and approved (deemed approved 14 days after receipt unless the owner objects in writing); later only with contract terms plus the statutory legend on each page of the plans
Contractor pays the sub. 7
What starts the clock. Owner: certification and approval of the billing or estimate. Sub: contractor's receipt of payment.
Interest or penalty. 1.5% per month (or higher agreed rate), owner and contractor; attorney fees to successful party; right to suspend or terminate after notice (32-1185)
Exemptions. § 32-1187: §§ 32-1182, 32-1183, 32-1185 and 32-1186 do not apply to the state or its political subdivisions
Key sentence. Notwithstanding the other provisions of this article, performance by a contractor, subcontractor or material supplier in accordance with the provisions of a construction contract entitles the contractor, subcontractor or material supplier to payment from the party with whom the contractor, subcontractor or material supplier contracts.
Notes. No section expressly addresses pay-if-paid or contingent payment clauses. 32-1182(P): 'A construction contract shall not alter the rights of any contractor, subcontractor or material supplier to receive prompt and timely payments as provided under this article.' 32-1183(G): when the owner withholds for defective work not caused by a sub, the contractor must still pay that sub within 21 days after payment would otherwise have been made. Clauses waiving the right to suspend for nonpayment are void (32-1186). Formerly numbered 32-1129 et seq.; current 32-1129 is an unrelated apprenticeship section.
Pay if paid: No statute found
A.R.S. § 34-221. Last checked October 17, 2026.
Pay when paid and timing. Sub paid within 7 days after receipt of each progress payment, unless otherwise agreed in writing
Owner pays the contractor. 14 days after the estimate is certified and approved (deemed approved 7 days after submission unless the owner issues a written finding)
Contractor pays the sub. 7 (unless otherwise agreed in writing)
What starts the clock. Owner: certification and approval of the estimate of work. Sub: contractor's receipt of progress payment.
Interest or penalty. 1% per month on late payments to the contractor and on sub payments delayed more than 7 days; attorney fees to successful party
Exemptions. 'Contractor' and 'subcontractor' exclude agricultural improvement districts, certain electric cooperatives and domestic water/wastewater improvement districts
Key sentence. The contractor shall pay to the contractor's subcontractors, design professionals or material suppliers and each subcontractor shall pay to the subcontractor's subcontractor, design professional or material supplier, within seven days after receipt of each progress payment, unless otherwise agreed in writing by the parties, the respective amounts allowed the contractor, subcontractor or design professional on account of the work performed by subordinate subcontractors or design professionals, to the extent of each such subcontractor's or design professional's interest therein, except that a contract for construction may not materially alter the rights of any contractor, subcontractor, design professional or material supplier to receive prompt and timely payment as provided under this section.
Notes. Applies to public works procured under Title 34. Subs may request written notice within 5 days after each progress payment to the contractor. Year not printed on the official page.
Arkansas
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
California
Pay if paid: No statute found
Cal. Civ. Code § 8800; Cal. Bus. & Prof. Code § 7108.5. Last checked October 17, 2026.
Pay when paid and timing. Sub paid within 7 days after receipt of each progress payment, unless otherwise agreed in writing
Owner pays the contractor. 30 (except as otherwise agreed in writing)
Contractor pays the sub. 7 (unless otherwise agreed in writing)
What starts the clock. Owner: notice demanding payment under the contract. Sub: receipt of progress payment.
Interest or penalty. 2% per month penalty (owner, § 8800(c); contractor, § 7108.5(b)); attorney's fees to prevailing party
Exemptions. Undisputed amounts only; up to 150% of a good-faith disputed amount may be withheld
Key sentence. A prime contractor or subcontractor shall pay to any subcontractor, not later than seven days after receipt of each progress payment, unless otherwise agreed to in writing, the respective amounts allowed the contractor on account of the work performed by the subcontractors, to the extent of each subcontractor’s interest therein.
Notes. No statute expressly addresses pay-if-paid. Civ. Code § 8122 voids any contract term that purports to 'waive, affect, or impair any other claimant’s rights under this part' (mechanics lien, stop payment and bond rights) without a statutory release. California pay-if-paid is governed by case law (Wm. R. Clarke Corp. v. Safeco Ins. Co., Cal. Supreme Court 1997, per secondary sources); that decision was not read on an official court site, so no cell relies on it. § 8800: Stats. 2010 ch. 697, operative 2012. § 7108.5 applies to private and public works except where PCC § 10262 applies; amended Stats. 2011 ch. 700.
Pay if paid: No statute found
Cal. Pub. Cont. Code §§ 10261.5, 10262, 10262.5 (state); § 20104.50 (local agencies); Bus. & Prof. Code § 7108.5. Last checked October 17, 2026.
Pay when paid and timing. Sub paid within 7 days after receipt of each progress payment
Owner pays the contractor. 30
Contractor pays the sub. 7
What starts the clock. Owner: receipt of an undisputed, properly submitted payment request. Sub: receipt of progress payment.
Interest or penalty. Owner: interest at the legal rate under Code Civ. Proc. § 685.010(a). Contractor: 2% per month penalty (§ 10262.5); attorney's fees to prevailing party
Exemptions. Improper payment requests must be returned within 7 days with reasons; days beyond 7 reduce the agency's interest-free period
Key sentence. Any local agency which fails to make any progress payment within 30 days after receipt of an undisputed and properly submitted payment request from a contractor on a construction contract shall pay interest to the contractor equivalent to the legal rate set forth in subdivision (a) of Section 685.010 of the Code of Civil Procedure.
Notes. State agencies: § 10261.5 (30 days after receipt of payment request). § 10262.5(a): 'Notwithstanding any other law, a prime contractor or subcontractor shall pay to any subcontractor, not later than seven days after receipt of each progress payment'. Local: § 20104.50, Stats. 1992 ch. 799. No statute addressing pay-if-paid was found; see private row for case law note.
Colorado
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Connecticut
Pay if paid: No statute found
Conn. Gen. Stat. §§ 42-158i to 42-158n (42-158j). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays sub within 25 days after receiving the owner payment that covers the sub's work
Owner pays the contractor. 30
Contractor pays the sub. 25
What starts the clock. Owner: written request for payment. Sub: contractor's receipt of owner payment encompassing the sub's work.
Interest or penalty. 1% per month starting 10 days after receipt of notice by registered or certified mail; escrow on demand; attorneys' fees if payment unreasonably withheld; 10% damages for bad-faith withholding
Exemptions. Public works and government contracts; HUD-funded or insured projects; owner contracts of $25,000 or less and resulting subcontracts; residential buildings of four or fewer units
Key sentence. a requirement that the contractor pay any amounts due any subcontractor or supplier, whether for labor performed or materials furnished, not later than twenty-five days after the date the contractor receives payment from the owner which encompasses labor performed or materials furnished by such subcontractor or supplier;
Notes. Required contract provisions. No payment may be withheld from a sub because of a dispute between the contractor and another party (42-158j(d)). Unpaid subs may demand direct payment from an owner that failed to pay the contractor (42-158j(e)). No section expressly addresses pay-if-paid clauses. Last amended P.A. 19-141.
Pay if paid: No statute found
Conn. Gen. Stat. §§ 49-41a, 49-41c. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: general contractor pays sub within 30 days after payment by the state or municipality
Contractor pays the sub. 30
What starts the clock. Contractor's receipt of payment from the state or municipality
Interest or penalty. 1% per month starting 10 days after receipt of notice by registered or certified mail; escrow on demand; attorney's fees if escrow refused and the sub substantially performed
Exemptions. 49-41a applies to public works contracts requiring a payment bond under § 49-41
Key sentence. A requirement that the general contractor, within thirty days after payment to the contractor by the state or a municipality, pay any amounts due any subcontractor, whether for labor performed or materials furnished, when the labor or materials have been included in a requisition submitted by the contractor and paid by the state or a municipality;
Notes. 49-41c: state contractors may withhold for a bona fide reason with written notice to the sub and the agency within the 30 days. No owner-to-contractor payment deadline for public works was located in these sections; the general state prompt-payment provisions were not checked. Last amended P.A. 09-146.
Delaware
Pay if paid: Void
6 Del. C. §§ 3506, 3507. Last checked October 17, 2026.
Pay when paid and timing. Clause stating the contractor assumes the risk of owner nonpayment is void; default timing 15 days after receipt of payment if terms are not specified
Owner pays the contractor. 30 (if contract has no payment term: 30 days after end of billing period or delivery of invoice, whichever is later)
Contractor pays the sub. 15 (if sub payment terms are not specified); § 3506(b) required clause: 30 days out of amounts paid to the contractor
What starts the clock. Owner: end of billing period or delivery of invoice, whichever is later. Sub: contractor's receipt of payment for the sub's work.
Interest or penalty. Interest penalty at the legal rate, compounding every 30 days (§ 3506(c)); attorneys' fees and costs (§ 3509)
Exemptions. § 3507 does not apply to public works contracts under 29 Del. C. ch. 69; contracts for 6 or fewer residential units under construction simultaneously or repair of a single residential unit; materials purchased for work on one's own property
Key sentence. It shall be against public policy and shall be void and unenforceable for any provision of a construction contract or subcontract agreement to: (1) State that a contractor assumes the risk of nonpayment of the owner;
Notes. § 3507(e) also voids clauses that bar suit until the GC is paid, that condition bond payment on owner payment, or that require out-of-state law or forum. Owner must pay 'strictly in accordance with the terms of the contract' (§ 3507(a)). Written notice of withholding within 7 days of the payment due date (§ 3506). Last amended 78 Del. Laws c. 269.
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Searched 29 Del. C. ch. 69 subchapters I-VII (state procurement, including § 6962 large public works) for payment-timing and interest sentences: none found apart from retainage provisions. 6 Del. C. § 3507 expressly excludes ch. 69 public works; § 3506's required clauses do not state a public-works exclusion, but whether they reach public owners was not determined.
District of Columbia
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Pay if paid: No statute found
D.C. Code §§ 2-221.01, 2-221.02. Last checked October 17, 2026.
Pay when paid and timing. Within 7 days of receipt of District payment, contractor must pay the sub's share or give written notice of intent to withhold with reasons (required contract clause)
Owner pays the contractor. Date set in the contract; otherwise 30 calendar days (excluding legal holidays) after receipt of a proper invoice
Contractor pays the sub. 7
What starts the clock. Owner: receipt of a proper invoice (if the contract sets no date). Sub: contractor's receipt of payment from the District agency.
Interest or penalty. Interest penalty at a rate set by Mayor's regulation (not less than 1%), compounding every 30 days; none if paid by the 15th day after the required payment date
Exemptions. Interest penalty rules under (a) apply to agencies under the direct control of the Mayor
Key sentence. A payment clause that obligates the contractor to take one of the 2 following actions within 7 days of receipt of any amount paid to the contractor by the District agency for work performed by any subcontractor under a contract:
Notes. Option (A) pay the sub's proportionate share; option (B) notify the agency and the sub in writing of intent to withhold with the reason. Agencies must flag invoice defects within 15 days. For added work under a change order, the prime pays the sub's undisputed amount within 10 days of receipt of District payment (d)(4)(B)(ii). D.C. Law 5-164 as amended.
Florida
Pay if paid: No statute found
Fla. Stat. § 715.12 (Construction Contract Prompt Payment Law). Last checked October 17, 2026.
Pay when paid and timing. Payment obligation (and statutory interest) arises only after the obligor, other than an owner, has been paid for the obligee's work by the party above it in the chain of contracts
Owner pays the contractor. At the time and on the terms in the contract; interest starts the 14th day after payment is due. Retainage balance within 14 days after the listed completion events.
Contractor pays the sub. Per contract, once the contractor has been paid for the sub's work; interest starts the 14th day after payment is due
What starts the clock. Written request for payment plus, for non-owners, receipt of payment from the party above in the chain of contracts, plus required lien affidavits or waivers
Interest or penalty. Rate under s. 55.03 plus an additional 12 percent per annum (or contract rate if greater); cannot be waived before payment is due
Exemptions. Applies only to written contracts to improve real property entered into after December 31, 1992, for which a construction lien is authorized under part I of chapter 713
Key sentence. The obligor, except an owner, has been paid for the obligee’s labor, services, or materials described in the obligee’s request for payment by the person immediately above the obligor in the chain of contracts; and
Notes. Excerpt is § 715.12(4)(b), one of the events that must occur before 'An obligor must pay an obligee'. The statute does not say whether a contract clause making owner payment a condition precedent is enforceable; Florida treats that through case law, which was not read on an official court site. Unless the contract says otherwise, a dispute does not let the obligor withhold undisputed amounts (6)(e). History: ch. 92-286; last amended ch. 2021-124.
Pay if paid: No statute found
Fla. Stat. § 218.735 (local governments); §§ 255.073, 255.074, 255.077 and 215.422 (state public entities). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays subs within 10 days after receipt of payment; subcontractor pays its subs within 7 days
Owner pays the contractor. Local: 20 business days after the request is stamped received (25 if an agent must approve first). State: undisputed portion by the contract date or 20 business days after receipt, whichever is earlier (§ 255.073(2))
Contractor pays the sub. 10 (subcontractor to its subs: 7)
What starts the clock. Owner: payment request or invoice stamped as received. Sub: contractor's receipt of payment.
Interest or penalty. 2% per month (local: or contract rate if greater); state contracts may not prohibit late-payment interest (§ 255.075)
Exemptions. Local retainage-closeout provisions do not apply to construction services of $200,000 or less, or to federally funded work with contrary grantor requirements
Key sentence. When a contractor receives payment from a public entity for labor, services, or materials furnished by subcontractors and suppliers hired by the contractor, the contractor shall remit payment due to those subcontractors and suppliers within 10 days after the contractor’s receipt of payment.
Notes. § 218.735(6) contains parallel 10-day and 7-day language for local governments. Local entities must reject a deficient request in writing within 20 business days. § 255.074(3): a public entity must submit the request to the Chief Financial Officer within 14 days. § 215.422 (state agencies): interest if a warrant is not issued within 40 days. History: 218.735 last amended ch. 2023-134; 255.073 last amended ch. 2023-134.
Georgia
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Hawaii
Pay if paid: Limited
Haw. Rev. Stat. § 444-25. Last checked October 17, 2026.
Pay when paid and timing. Sub paid within 10 days after the later of the sub's invoice or the contractor's receipt of owner payment for the sub's work; if payment is contingent on escrow or trust funds, that must be stated in the bid solicitation
Contractor pays the sub. 10
What starts the clock. Later of: receipt of the sub's invoice with supporting documents, or contractor's receipt of owner payment for the sub's work
Interest or penalty. 1.5% per month from the date payment is due
Exemptions. Does not apply to chapter 103 or any section affecting public contracts; does not apply where delay is due to a bona fide dispute; L 2012 c 260 amendment does not apply to private contracts entered into before July 1, 2012
Key sentence. A contractor shall pay the contractor's subcontractor for any goods and services rendered within ten days after receipt of an invoice by the subcontractor that includes any supporting documents as required by the terms of the subcontract and after receipt by the contractor of payment from the owner for the subcontractor's work, whichever occurs later.
Notes. 'limited' because the statute conditions contingent-on-escrow/trust payment terms on disclosure in the bid solicitation: 'If payment is contingent upon receipt of funds held in escrow or trust, the contractor shall clearly state this fact in the contractor's solicitation of bids.' No private owner-to-contractor deadline was found; HRS 507-48 (owner may retain amounts for filed liens) was also checked. Last amended L 2012, c 260.
Pay if paid: No statute found
Haw. Rev. Stat. §§ 103-10, 103-10.5. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: money paid to the contractor is disbursed to subs within 10 days after receipt
Owner pays the contractor. 30 calendar days
Contractor pays the sub. 10
What starts the clock. Owner: receipt of a proper statement or satisfactory delivery or performance, whichever is later. Sub: contractor's receipt of the money.
Interest or penalty. Owner: prime rate plus 2% (§ 103-10). Retainage release violations: 1.5% per month penalty (§ 103-10.5(c))
Exemptions. § 103-10 does not apply where delay is due to a bona fide dispute, labor dispute, power or mechanical failure, fire, acts of God or similar; federally contingent payments must be disclosed in the solicitation
Key sentence. Any money paid to a contractor shall be disbursed to subcontractors within ten days after receipt of the money in accordance with the terms of the subcontract; provided that the subcontractor has met all the terms and conditions of the subcontract and there are no bona fide disputes on which the procurement officer has withheld payment.
Notes. § 103-10 applies to any agency of the State or any county. Final payment, including retainage, to subs within 10 days after receipt (§ 103-10.5(b)). § 103-10 last amended L 2004, c 203.
Idaho
Pay if paid: No statute found
Idaho Code § 29-115. Last checked October 17, 2026.
Pay when paid and timing. Retention only: original contractor pays each sub its share within 10 days after receiving retention proceeds
Owner pays the contractor. Retention: reduced within 35 days of substantial completion and released within 35 days of final completion; no progress-payment deadline
Contractor pays the sub. 10 (retention share only)
What starts the clock. Contractor's receipt of retention proceeds
Exemptions. Applies to private works contracts entered into on or after July 1, 1990; 5% retention cap does not apply to owner-occupied residential property of 1-4 units; bona fide disputes (up to 150% of disputed value)
Key sentence. Subject to subsection (5) of this section, within ten (10) days from the time that all or any portion of the retention proceeds are received by the original contractor, the original contractor shall pay each of its subcontractors from whom retention has been withheld, each subcontractor’s share of the retention received.
Notes. No general private progress-payment deadline or pay-if-paid section was found; this section covers retention, Idaho law and forum, and anti-waiver ('It shall be against public policy for any party to require any other party to waive any provision of this statute.'). Last amended 2025, ch. 34.
Pay if paid: No statute found
Idaho Code § 67-2302. Last checked October 17, 2026.
Owner pays the contractor. 60 calendar days of receipt of billing (unless a contract agreed to a longer period)
What starts the clock. Later of the agency's official receipt of the invoice or actual receipt of the goods or services
Interest or penalty. Interest at the rate in § 63-3045, compounding monthly; on retainage, interest starts 30 calendar days after the contractor completes work unless the contract says otherwise; attorney fees if the vendor prevails
Exemptions. Claims against a county for indigent care, and judgment obligations
Key sentence. All bills shall be accepted, certified for payment, and paid within sixty (60) calendar days of receipt of billing, unless the buyer and the vendor have agreed by a contract in place at the time the order was placed that a longer period of time is acceptable to the vendor.
Notes. Applies to the state and any taxing district, including 'contracts for services, construction, repairs and remodeling'. Defective invoices must be flagged within 10 days. No public-works sub payment deadline was found in § 54-1926 (bonds and retainage) or § 54-1926A. History: added 1986, ch. 200.
Illinois
Pay if paid: Limited
815 ILCS 603/10, 603/15 (Contractor Prompt Payment Act); 770 ILCS 60/21(e). Last checked October 17, 2026.
Pay when paid and timing. Pay-if-paid clause is not a defense to a mechanics lien claim; statutory timing runs from receipt of each payment
Owner pays the contractor. 15 calendar days after approval (application deemed approved 25 days after receipt unless the owner gives a written statement of amount withheld and reason)
Contractor pays the sub. 15 calendar days
What starts the clock. Owner: approval of the payment application. Sub: contractor's receipt of each periodic payment, final payment or retainage.
Interest or penalty. 10% per annum; right to suspend after 7 calendar days' written notice
Exemptions. Contracts that require the expenditure of public funds; single-family residences and multi-family residences with 12 or fewer units in a single building
Key sentence. Any provision in a contract, agreement, or understanding, when payment from a contractor to a subcontractor or supplier is conditioned upon receipt of the payment from any other party including a private or public owner, shall not be a defense by the party responsible for payment to a claim brought under Section 21, 22, 23, or 28 of this Act against the party.
Notes. The Mechanics Lien Act section limits pay-if-paid only as a defense to lien and related claims; it does not say such clauses are void for contract claims. 603/10(2) applies once the sub's work 'has been accepted by the owner, the owner's agent, or the contractor'. 603/10 source P.A. 100-201 (2017); 60/21 source P.A. 103-827 (eff. 2025).
Pay if paid: Limited
30 ILCS 540/3-2, 540/7 (State Prompt Payment Act); 50 ILCS 505/4, 505/9 (Local Government Prompt Payment Act); 770 ILCS 60/21(e). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt of payment; pay-if-paid is not a defense to lien claims against public funds (770 ILCS 60/23 claims are listed in 60/21(e))
Owner pays the contractor. State: 60 days of receipt of a proper bill. Local: 30 days after approval.
Contractor pays the sub. State: 10 business days or 15 calendar days, whichever is earlier. Local: 15 days.
What starts the clock. Owner: receipt of proper bill (state) or approval (local). Sub: contractor's receipt of payment.
Interest or penalty. State: 1.0% per month after 60 days. Local: 1% per month owner; 2% per month contractor to sub
Key sentence. If the contractor, without reasonable cause, fails to make any payment to his subcontractors and material suppliers within 15 days after receipt of payment under the public construction contract, the contractor shall pay to his subcontractors and material suppliers, in addition to the payment due them, interest in the amount of 2% per month, calculated from the expiration of the 15-day period until fully paid.
Notes. 30 ILCS 540/7(a-5): 'When a contractor receives any payment, the contractor shall pay each subcontractor and material supplier electronically within 10 business days or 15 calendar days, whichever occurs earlier'. The official page shows the text before amendment by P.A. 104-550 (eff. 7-1-27), so these state-project rules may change on July 1, 2027. Contractor that refuses payment must give written notice within 5 calendar days.
Indiana
Pay if paid: Limited
Ind. Code § 32-28-3-18. Last checked October 17, 2026.
Pay when paid and timing. A pay-if-paid condition cannot be a condition precedent to, limit, or be a defense to the provider's lien rights
Exemptions. Class 2 structures (as defined in IC 22-12-1-5) and auxiliary improvements; regulated utility property used to furnish heat, light, water, telecommunications or power
Key sentence. An obligor's receipt of payment from a third person may not:(1) be a condition precedent to;(2) limit; or(3) be a defense to;the provider's right to record or foreclose a lien against the real estate that was improved by the provider's labor, material, or equipment.
Notes. Limits pay-if-paid only as to lien rights; the statute does not address enforceability of the clause in a contract claim. No private prompt-payment deadlines were found: Titles 4, 5, 32 and 36 of the 2025 Indiana Code were searched for sentences combining 'subcontractor', a day count and 'pay'. Last amended P.L.81-2020.
Pay if paid: No statute found
Ind. Code §§ 4-13.6-7-4, 5-16-5.5-5 (state); § 5-17-5-1 (late-payment penalty, state agencies and political subdivisions). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays each sub its share within 10 days of receipt of state payment
Owner pays the contractor. Date in the contract; if none, 35 days of receipt of goods and services or a properly completed claim (political subdivisions with board approval: 35 days after the first regular meeting held at least 10 days after receipt)
Contractor pays the sub. 10 (state public works)
What starts the clock. Owner: receipt of goods and services or a properly completed claim. Sub: contractor's receipt of state payment.
Interest or penalty. 1% per month late payment penalty on public bodies, compounding every 30 days (§ 5-17-5)
Exemptions. § 5-17-5-1 excludes good-faith disputes with timely notice, interagency transactions, contracts paid exclusively with federal funds, and certain small INDOT progress payments
Key sentence. Within ten (10) days of receipt of any payment by the state or the escrow agent, the contractor or escrow agent shall pay each subcontractor and each supplier the appropriate share of the payment the contractor received based upon the service performed by the subcontractor or the materials received from the supplier.
Notes. Contractor must certify that subs received their share of the previous payment. No sub-payment deadline found for local public works under IC 36-1-12. § 4-13.6-7-4 last amended P.L.5-1993; § 5-17-5 last amended P.L.9-2024.
Iowa
Pay if paid: No statute found
Iowa Code § 572.30. Last checked October 17, 2026.
Pay when paid and timing. Residential only: unless otherwise agreed, GC pays sub in full within 30 days after receiving full payment from the owner
Contractor pays the sub. 30 (residential construction, unless otherwise agreed)
What starts the clock. General contractor's receipt of full payment from the owner
Exemptions. Applies only to residential construction property
Key sentence. Unless otherwise agreed, a general contractor or owner-builder who engages a subcontractor to supply labor or materials or both for improvements, alterations, or repairs to a specific residential construction property shall pay the subcontractor in full for all labor and materials supplied within thirty days after the date the general contractor or owner-builder receives full payment from the owner.
Notes. Excerpt copied from the official chapter PDF; the PDF text layer inserts stray spaces (e.g. 'owner -builder'), which were removed. No commercial private prompt-payment deadline was found in chapter 572. Remedy: action by the sub (or owner by subrogation) after notice of nonpayment.
Pay if paid: Limited
Iowa Code § 573.12. Last checked October 17, 2026.
Pay when paid and timing. Sub paid 7 days after the contractor receives payment for the sub's work, or a reasonable time after the contractor could have received payment if nonpayment is not the sub's fault
Owner pays the contractor. 14 days after receipt of the payment request (up to 30 if the contract documents specify), for progress payments approved by the architect or engineer
Contractor pays the sub. 7
What starts the clock. Owner: receipt of the payment request at the designated place or person. Sub: contractor's receipt of payment for the sub's work.
Interest or penalty. Interest at the rate in § 573.14; contractor must share interest received proportionally with subs
Key sentence. A progress payment or final payment to a subcontractor for satisfactory performance of the subcontractor’s work shall be made no later than one of the following, as applicable: (a) Seven days after the contractor receives payment for that subcontractor’s work. (b) A reasonable time after the contractor could have received payment for the subcontractor’s work, if the reason for nonpayment is not the subcontractor’s fault.
Notes. 'limited' because subparagraph (b) requires payment within a reasonable time even when the contractor was not paid, if that is not the sub's fault. Final payment: failure to pay within 40 days (up to 50 if specified) after completion and acceptance triggers interest. Stray PDF spaces removed from the excerpt. Chapter 573 governs public improvement contracts.
Kansas
Pay if paid: Limited
K.S.A. 16-1801 to 16-1807 (16-1803) (Kansas Fairness in Private Construction Contract Act). Last checked October 17, 2026.
Pay when paid and timing. Pay-if-paid clause is no defense to a mechanic's lien or lien-bond claim; sub paid within 7 business days of contractor's receipt of owner payment
Owner pays the contractor. 30
Contractor pays the sub. 7 business days
What starts the clock. Owner: receipt of a timely, properly completed, undisputed request for payment. Sub: contractor's receipt of owner payment (sub must have submitted a proper request).
Interest or penalty. 18% per annum on the undisputed amount; right to suspend after notice (16-1805); attorney fees to prevailing party (16-1806)
Exemptions. Retainage excluded from the 30-day owner rule; rights cannot be waived by contract (16-1801(b))
Key sentence. Any provision in a contract for private construction providing that a payment from a contractor or subcontractor to a subcontractor is contingent or conditioned upon receipt of a payment from any other private party, including a private owner, is no defense to a claim to enforce a mechanic's lien or bond to secure payment of claims pursuant to the provisions of article 11 of chapter 60 of the Kansas Statutes Annotated, and amendments thereto.
Notes. The limit applies to lien and lien-bond claims; the statute does not void the clause for contract claims. History: L. 2005 ch. 156; L. 2009 ch. 136.
Pay if paid: No statute found
K.S.A. 16-1901 to 16-1908 (16-1903). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: sub paid within 7 business days of contractor's receipt of owner payment
Owner pays the contractor. 30 (45 if extenuating circumstances exist)
Contractor pays the sub. 7 business days
What starts the clock. Owner: receipt of a timely, properly completed, undisputed request for payment. Sub: contractor's receipt of owner payment.
Interest or penalty. 18% per annum on the undisputed amount; attorney fees to prevailing party in contractor-sub actions (16-1906)
Exemptions. 'Construction' excludes roads, highways and bridges; retainage excluded from the 30-day owner rule
Key sentence. All contracts for public construction shall provide that payment of amounts due a contractor from an owner, except retainage, shall be made within 30 days after the owner receives a timely, properly completed, undisputed request for payment according to terms of the contract, unless extenuating circumstances exist which would preclude approval of payment within 30 days.
Notes. Architect/engineer must review and forward undisputed requests within 7 business days. Public entity includes the state, political subdivisions, school districts and nonprofits operated with public money. Clauses waiving payment-bond claims are void except to the extent of payment received. History: L. 2007 ch. 163.
Kentucky
Pay if paid: No statute found
KRS 371.400 to 371.425 (371.405, 371.425). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays sub undisputed amounts within 15 business days of receipt of payment from the contracting entity
Owner pays the contractor. 30 business days
Contractor pays the sub. 15 business days
What starts the clock. Owner: receipt of a timely, properly completed, undisputed request for payment. Sub: contractor's receipt of payment (sub must have submitted a proper request).
Interest or penalty. 12% per annum; contractor must give certified-mail notice at 25 business days; attorney's fees (371.415)
Exemptions. Residential construction; contracts by borrowers of USDA Rural Utilities Service funds; facilities under KRS ch. 278; contracts before June 26, 2007
Key sentence. A contractor shall pay its subcontractors any undisputed amounts due within fifteen (15) business days of receipt of payment from the contracting entity, including payment of retainage if retainage is released by the contracting entity, if the subcontractor has provided a timely, properly completed, and undisputed request for payment to the contractor.
Notes. 371.405(2) voids waivers of litigation rights, lien rights (KRS ch. 376), and no-damages-for-delay clauses, but no subsection addresses pay-if-paid. Applies to private construction excluding residential (371.425(1)). 371.405 amended 2025 Ky. Acts ch. 156, effective June 27, 2025. The PDF text layer splits some words (e.g. 're solve'); the excerpt has none.
Pay if paid: No statute found
KRS 371.400 to 371.425 (371.405, 371.425). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays sub undisputed amounts within 15 business days of receipt of payment from the contracting entity
Owner pays the contractor. 30 business days (45 business days for postsecondary institutions and boards of education)
Contractor pays the sub. 15 business days
What starts the clock. Owner: receipt of a timely, properly completed, undisputed request for payment. Sub: contractor's receipt of payment.
Interest or penalty. 12% per annum
Exemptions. USDA Rural Utilities Service-funded contracts; facilities under KRS ch. 278; conflicts with KRS 367.620 to 367.628 are governed by those sections
Key sentence. Except as provided in subsection (7) of this section, all contracts for construction shall provide that payment of amounts due a contractor from a contracting entity, except retainage, shall be made within thirty (30) business days after the contracting entity receives a timely, properly completed, undisputed request for payment.
Notes. 'Contracting entity' includes public officials, authorities and entities (371.400(3)), and the Act applies to public construction and public works (371.425(1)). The official PDF text layer splits 'construction' as 'const ruction'; the split was removed in the excerpt. Amended 2025 Ky. Acts ch. 156.
Louisiana
Pay if paid: No statute found
La. R.S. 9:2784. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays subs no later than the 7th day after receiving owner payment
Owner pays the contractor. 35 (single-family residence contracts may allow up to 61; if the owner has a construction loan, the later of 35 days or 5 days after receiving loan proceeds)
Contractor pays the sub. 7
What starts the clock. Owner: receipt of a written payment request. Sub: contractor's receipt of owner payment.
Interest or penalty. Penalty of 1.5% of the unpaid amount per month; court costs and attorney fees to prevailing party
Exemptions. Oil, gas and mineral exploration/production agreements, well or mine services, and hydrocarbon pipeline/transport agreements; does not supersede R.S. 38:2191 for public contracts
Key sentence. The payment required by this Subsection shall be made no later than the seventh day after the date the contractor receives payment from the owner or person authorized to act on behalf of the owner.
Notes. 'A waiver of a provision of this Section shall be absolutely null.' Undisputed amounts must be paid despite a good-faith dispute. No subsection addresses pay-if-paid clauses; Louisiana case law on them was not read. Most recently amended Acts 2026, No. 822.
Pay if paid: No statute found
La. R.S. 38:2191. Last checked October 17, 2026.
Owner pays the contractor. 45 (progress payments after receipt of a certified request; final payment after formal final acceptance and receipt of a clear lien certificate)
What starts the clock. Receipt of a certified request for payment (progress) or of a clear lien certificate after final acceptance (final)
Interest or penalty. Interest at one-half percent accumulated daily, not to exceed 15%, plus reasonable attorney fees; mandamus available; interest received must be shared pro rata with subs within 10 business days
Key sentence. Any public entity failing to make any progressive stage payment within forty-five days following receipt of a certified request for payment by the public entity without reasonable cause shall be liable for reasonable attorney fees and interest charged at one-half percent accumulated daily, not to exceed fifteen percent.
Notes. 'The provisions of this Section shall not be subject to waiver by contract.' No contractor-to-sub deadline is set here; R.S. 9:2784(G)(1) says that section does not supersede 38:2191 for public contracts, so whether its 7-day sub rule also reaches public jobs was not determined. Last amended Acts 2024, No. 165.
Maine
Pay if paid: No statute found
10 M.R.S. §§ 1111-1120 (1113, 1114). Last checked October 17, 2026.
Pay when paid and timing. Sub paid the amount received for its work 7 days after receipt of each progress or final payment or 7 days after the sub's invoice, whichever is later
Owner pays the contractor. 20 days after end of billing period or after delivery of invoice, whichever is later (except as otherwise agreed)
Contractor pays the sub. 7
What starts the clock. Owner: end of billing period or delivery of invoice. Sub: later of contractor's receipt of payment or the sub's invoice.
Interest or penalty. Interest at the rate in 14 M.R.S. § 1602-C; in arbitration or litigation, an extra penalty of 1% per month on sums wrongfully withheld; attorney's fees to substantially prevailing party
Exemptions. Contracts entered into by the Department of Transportation; materials bought for work on one's own property; federal-aid variances
Key sentence. Notwithstanding any contrary agreement, when a subcontractor or material supplier has performed in accordance with the provisions of a contract, a contractor shall pay to the subcontractor or material supplier, and each subcontractor shall in turn pay to its subcontractors or material suppliers, the full or proportional amount received for each subcontractor's work and materials based on work completed or service provided under the subcontract, 7 days after receipt of each progress or final payment or 7 days after receipt of the subcontractor's or material supplier's invoice, whichever is later.
Notes. § 1114(2): the contractor must disclose the owner's payment due date before contracting; if it fails to disclose accurately, it must pay the sub as though the 20-day owner due dates were met. The Act does not expressly address pay-if-paid clauses. PL 1993 c. 461; § 1114 last amended PL 2003 c. 460.
Pay if paid: No statute found
10 M.R.S. §§ 1111-1120 (1111(6), 1113, 1114). Last checked October 17, 2026.
Pay when paid and timing. Same Prompt Payment Act: sub paid 7 days after receipt of payment or invoice, whichever is later
Owner pays the contractor. 20 days after end of billing period or after delivery of invoice, whichever is later (except as otherwise agreed)
Contractor pays the sub. 7
What starts the clock. Owner: end of billing period or delivery of invoice. Sub: later of contractor's receipt of payment or the sub's invoice.
Interest or penalty. Interest at the rate in 14 M.R.S. § 1602-C; 1% per month penalty on sums wrongfully withheld in arbitration or litigation
Exemptions. Contracts entered into by the Department of Transportation (§ 1112); federal-aid variances (§ 1119)
Key sentence. "Owner" also includes the State and instrumentalities and subdivisions of the State including municipalities, school districts and school administrative districts having an interest in that real property.
Notes. The definition of 'owner' brings the State, municipalities and school districts under the same Act, so the private-row terms apply to public owners other than MaineDOT. Separate public-works statutes in Title 5 were not checked for payment timing.
Maryland
Pay if paid: Limited
Md. Code, Real Prop. §§ 9-113, 9-301 to 9-305. Last checked October 17, 2026.
Pay when paid and timing. A clause conditioning sub payment on the contractor's receipt of owner payment may not waive the sub's mechanics' lien or bond rights; statutory timing: 7 days after receipt of payment for the sub's work
Owner pays the contractor. If the contract sets dates: within 7 days after the date specified. If not: earlier of 30 days after the occupancy permit or 30 days after the owner takes possession
Contractor pays the sub. 7
What starts the clock. Owner: contract payment date (or occupancy/possession). Sub: contractor's receipt of each payment for the sub's work.
Interest or penalty. Court may award interest from the date due, costs and equitable relief; attorney's fees for bad-faith nonpayment (§ 9-303)
Exemptions. Owner rule does not apply to contracts with the State, counties, municipalities, boards of education or public authorities; subtitle does not apply to construction and sale of a single-family dwelling, Custom Home Protection Act transactions, or licensed home improvement contracts (§ 9-305)
Key sentence. A provision in an executory contract between a contractor and a subcontractor that is related to construction, alteration, or repair of a building, structure, or improvement and that conditions payment to the subcontractor on receipt by the contractor of payment from the owner or any other third party may not abrogate or waive the right of the subcontractor to: (1) Claim a mechanics’ lien; or (2) Sue on a contractor’s bond.
Notes. § 9-113(c): any provision made in violation of the section 'is void as against the public policy of this State.' The limit protects lien and bond rights; the statute does not void pay-if-paid for contract claims. § 9-302(b)(3): 'within 7 days after receipt by the contractor or subcontractor of each payment received for its subcontractors’ work or materials.' Year not printed on the official page.
Pay if paid: Limited
Md. Code, State Fin. & Proc. §§ 15-103, 15-226; Real Prop. § 9-113. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays undisputed amounts within 10 days of receiving a progress or final payment from the State; § 9-113 lien/bond protection applies to any contractor-sub executory contract
Owner pays the contractor. 30 days after payment becomes due and a proper invoice is received (15 days for small business reserve contracts) (stated as State policy)
Contractor pays the sub. 10
What starts the clock. Owner: due date plus receipt of a proper invoice. Sub: contractor's receipt of a progress or final payment from the State.
Interest or penalty. Interest under § 15-104 (not read); sub may give written notice of nonpayment to the procurement officer
Key sentence. A contractor shall pay a subcontractor or supplier an undisputed amount to which the subcontractor or supplier is entitled within 10 days of receiving a progress or final payment from the State.
Notes. Contractor withholding must be explained in writing within the normal payment period, with a copy to the procurement officer. § 15-226 subsections (e) onward (procurement officer process and remedies) were not captured. State procurement contracts only; county and municipal rules were not checked. § 9-113 lien-right protection is in the private row.
Massachusetts
Pay if paid: Void
Mass. Gen. Laws ch. 149, § 29E. Last checked October 17, 2026.
Pay when paid and timing. Pay-if-paid void except to the extent the third person didn't pay because of the performer's uncured nonperformance, or because the third person is insolvent
Owner pays the contractor. 45 days after approval (approval or rejection within 15 days after submission; deemed approved if not acted on)
Contractor pays the sub. 45 days after approval (lower tiers may get 7 more days per tier to approve or reject)
What starts the clock. Approval of the written application for periodic progress payment
Exemptions. Applies only where the prime contract's original price is $3,000,000 or more on a project lienable under ch. 254 §§ 2 or 4; excludes projects with 1 to 4 dwelling units
Key sentence. A provision in a contract for construction which makes payment to a person performing the construction conditioned upon receipt of payment from a third person that is not a party to the contract shall be void and unenforceable, except:
Notes. Exception (1): amounts not received because the performer failed to perform and failed to cure after written notice (14 days if the contract has no cure provision). Exception (2): amounts not received because the third person is insolvent (rest of that clause not captured). The 45-day payment period applies 'unless the payment is subject to the condition of receipt of payment by a third person but only to the extent enforceable under subsection (e).' Year not printed on the official page.
Pay if paid: No statute found
Mass. Gen. Laws ch. 30, §§ 39K, 39F. Last checked October 17, 2026.
Pay when paid and timing. General contractor must pay each sub 'forthwith' after receiving payment on a periodic estimate; sub may demand direct payment from the awarding authority if unpaid 70 days after substantial completion
Owner pays the contractor. 15 days after receipt of a periodic estimate (30 days for the Commonwealth, including local housing authorities); final payment within 65 days after completion or substantial completion
Contractor pays the sub. Forthwith after receipt of payment
What starts the clock. Owner: receipt of a periodic estimate requesting payment. Sub: general contractor's receipt of payment on account of a periodic estimate.
Interest or penalty. Daily interest at 3 percentage points above the Federal Reserve Bank of Boston rediscount rate (§ 39K)
Exemptions. § 39K applies to public building contracts over $5,000 (Commonwealth) or $2,000 (other public bodies); § 39F applies to contracts under ch. 149 §§ 44A-44L and ch. 30 § 39M
Key sentence. Forthwith after the general contractor receives payment on account of a periodic estimate, the general contractor shall pay to each subcontractor the amount paid for the labor performed and the materials furnished by that subcontractor, less any amount specified in any court proceedings barring such payment and also less any amount claimed due from the subcontractor by the general contractor.
Notes. Owner deadline excerpt (§ 39K): 'Within fifteen days (30 days in the case of the commonwealth, including local housing authorities) after receipt from the contractor ... of a periodic estimate requesting payment of the amount due for the preceding month, the awarding authority will make a periodic payment'. Direct-payment demand process in § 39F(d)-(h). The ch. 149 § 29E pay-if-paid rule is defined by lienability under ch. 254 §§ 2 or 4; whether it reaches public projects was not determined.
Michigan
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Pay if paid: No statute found
MCL 17.52 (Act 279 of 1984). Last checked October 17, 2026.
Owner pays the contractor. 45 (principal executive departments of the State, unless otherwise agreed in writing)
What starts the clock. Later of receipt of the goods or services, a complete invoice, or a complete contract
Exemptions. Applies to principal executive departments of the State; local public owners not covered by this section
Key sentence. Unless otherwise agreed in writing, a principal executive department shall take all steps necessary to assure that payment for goods or services is mailed to a private enterprise within 45 days after the principal executive department receives the goods or services, a complete invoice for the goods or services, or a complete contract for goods or services, whichever is later.
Notes. General state payment statute, not construction-specific. Act 524 of 1980 (MCL 125.1561 et seq., construction contracts with public agencies) covers retainage; its § 125.1563 was viewed and sets retainage limits, not progress-payment deadlines. Interest provisions of Act 279 (other sections) were not read. 1984 Act 279, eff. Mar. 29, 1985.
Minnesota
Pay if paid: No statute found
Minn. Stat. § 337.10, subds. 3-4. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: prime and subs must pay lower tiers within 10 days of receipt of payment for undisputed services
Owner pays the contractor. Monthly progress payments unless the contract provides otherwise (no day count)
Contractor pays the sub. 10
What starts the clock. Receipt by the party responsible for payment of payment for the undisputed services
Interest or penalty. 1.5% per month (minimum $10/month on balances of $100 or more); costs and attorney fees to the prevailing claimant; right to suspend work if undisputed payment is not received within 10 days
Key sentence. A building and construction contract shall be deemed to require the prime contractor and all subcontractors to promptly pay any subcontractor or material supplier contract within ten days of receipt by the party responsible for payment of payment for undisputed services provided by the party requesting payment, including payments under subdivision 4.
Notes. No subdivision addresses pay-if-paid clauses. Waivers of lien or payment-bond rights before payment are void (subd. 2). Owner must release retainage within 60 days after substantial completion; contractor pays it to subs within 10 days of receipt (subd. 4(c)-(d)). Last amended 1Sp2019 c 7.
Pay if paid: No statute found
Minn. Stat. § 16A.124 (state agencies); § 471.425 (municipalities). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: municipal contracts must require the prime to pay subs within 10 days of receipt of payment from the municipality
Owner pays the contractor. State: 30 days after receipt of invoice. Municipalities: 35 days (45 if the board meets less than monthly; joint powers 45)
Contractor pays the sub. 10
What starts the clock. Owner: receipt of invoice / completed delivery, whichever is later. Sub: prime's receipt of payment.
Interest or penalty. 1.5% per month (state and municipal; prime to sub on municipal contracts)
Exemptions. No interest during good-faith disputes
Key sentence. Each contract of a municipality must require the prime contractor to pay any subcontractor within ten days of the prime contractor's receipt of payment from the municipality for undisputed services provided by the subcontractor.
Notes. § 16A.124 subd. 3: 'the state agency must pay the vendor within 30 days following the receipt of the invoice for the completed delivery of the product or service.' § 337.10 subd. 3 also deems 'a building and construction contract' to require 10-day sub payment; its reach to public owners was not separately confirmed. § 471.425 History: 1985 c 136; 1995 c 31.
Mississippi
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Missouri
Pay if paid: No statute found
RSMo § 431.180. Last checked October 17, 2026.
Owner pays the contractor. As scheduled in the contract (no statutory day count)
Contractor pays the sub. As scheduled in the contract (no statutory day count)
What starts the clock. Payment dates in the contract
Interest or penalty. Court or arbitrator may award interest up to 1.5% per month from the date payment was due, plus reasonable attorney fees to the prevailing party
Exemptions. Owner-occupied residential property of four units or less
Key sentence. All persons who enter into a contract for private design or construction work after August 28, 1995, shall make all scheduled payments pursuant to the terms of the contract.
Notes. Missouri's private statute enforces contract payment terms rather than setting day counts; it does not address pay-if-paid. L. 1995 S.B. 93, A.L. 1999 H.B. 343.
Pay if paid: No statute found
RSMo § 8.960 (formerly § 34.057, transferred 2022). Last checked October 17, 2026.
Pay when paid and timing. When the contractor receives less than full payment, it disburses pro rata; contractor pays subs within 15 days after receipt of payment
Owner pays the contractor. 30
Contractor pays the sub. 15
What starts the clock. Owner: later of delivery of materials or services, delivery of the invoice to the designated person or place, or delivery of the contractor's approval of the owner's estimate. Sub: contractor's receipt of payment.
Interest or penalty. 1.5% per month (owner to contractor after 30 days; contractor to sub after 15 days without reasonable cause)
Exemptions. Federal funding requirements to the contrary; state grant funds not timely received by the public municipality
Key sentence. If the contractor, without reasonable cause, fails to make any payment to his subcontractors and material suppliers within fifteen days after receipt of payment under the public construction contract, the contractor shall pay to his subcontractors and material suppliers, in addition to the payment due them, interest in the amount of one and one-half percent per month, calculated from the expiration of the fifteen-day period until fully paid.
Notes. Applies to public works contracts of the state and its political subdivisions. Final payment within 30 days of the due date. L. 2022 S.B. 758 (transfer).
Montana
Pay if paid: No statute found
Mont. Code Ann. §§ 28-2-2101 to 28-2-2115 (28-2-2103, 28-2-2104). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays sub within 7 days after receiving a periodic or final payment
Owner pays the contractor. 7 days after approval (request deemed approved 21 days after receipt unless disapproved in writing); later only with the statutory 'Information for Bidders' notice (28-2-2115)
Contractor pays the sub. 7
What starts the clock. Owner: approval of the payment request. Sub: contractor's receipt of periodic or final payment (sub must submit a billing statement or invoice).
Interest or penalty. 1.5% per month if payment is delayed more than 30 days past the due date; interest shared pro rata with subs; attorney fees to prevailing party (28-2-2105)
Key sentence. Within 7 days after a contractor receives a periodic or final payment from an owner or a state agency, the contractor shall pay the subcontractor, if any, the full amount due the subcontractor in accordance with the subcontract for work performed or materials provided in accordance with that subcontract.
Notes. 28-2-2102: performance of a subcontract 'entitles the subcontractor to payment from the contractor.' No section expressly addresses pay-if-paid. Interest runs only if payment is more than 30 days late (28-2-2104). 28-2-2103 last amended Ch. 274, L. 2003; 28-2-2104 last amended Ch. 254, L. 2009.
Pay if paid: No statute found
Mont. Code Ann. §§ 28-2-2101, 28-2-2103, 28-2-2104. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays sub within 7 days after receiving payment from an owner or a state agency
Owner pays the contractor. Local government owners: 7 days after approval (deemed approved 21 days after receipt unless disapproved)
Contractor pays the sub. 7
What starts the clock. Owner: approval of the payment request. Sub: contractor's receipt of payment from an owner or a state agency.
Interest or penalty. 1.5% per month if more than 30 days late
Exemptions. 'Government entity' covers cities, towns, counties, consolidated governments, school districts and special districts; state agencies are not listed as owners, though the 7-day sub rule applies to payments received from a state agency
Key sentence. "Owner" means a governmental entity or private entity that has a legal interest in the real property improved or to be improved by the performance of the construction contract.
Notes. Local public owners are covered by the same Part 21 as private owners. State-agency owner payment deadlines (Title 17 or 18) were not read.
Nebraska
Pay if paid: No statute found
Neb. Rev. Stat. §§ 45-1201 to 45-1210 (Nebraska Construction Prompt Pay Act) (45-1203, 45-1205). Last checked October 17, 2026.
Pay when paid and timing. Sub paid within 10 days after contractor's receipt of each payment, once 'all conditions precedent to payment contained in the subcontract have been satisfied'
Owner pays the contractor. 30
Contractor pays the sub. 10
What starts the clock. Owner: receipt of a payment request made under the contract. Sub: contractor's receipt of each periodic or final payment.
Interest or penalty. 1% per month, due only after the payer has been notified of § 45-1205
Exemptions. Residential property of no more than four units (45-1207); contracts before Oct. 1, 2010
Key sentence. When a subcontractor has performed work in accordance with the provisions of a subcontract and all conditions precedent to payment contained in the subcontract have been satisfied, the contractor shall pay the subcontractor and the subcontractor shall pay his, her, or its subcontractor, within ten days after receipt by the contractor or subcontractor of each periodic or final payment, the full amount received for the subcontractor's work and materials based on work completed or service provided under the subcontract for which the subcontractor has properly requested payment, if the subcontractor provides or has provided satisfactory and reasonable assurances of continued performance and financial responsibility to complete the work.
Notes. The Act defers to subcontract conditions precedent rather than restricting them; it does not expressly address pay-if-paid. Waivers of bond claims beyond amounts received are void (45-1209). Laws 2010 LB552; Laws 2014 LB961.
Pay if paid: No statute found
Neb. Rev. Stat. §§ 45-1202, 45-1203, 45-1205, 45-1210. Last checked October 17, 2026.
Pay when paid and timing. Same Prompt Pay Act applies to political subdivision owners
Owner pays the contractor. 30 (political subdivisions)
Contractor pays the sub. 10
What starts the clock. Owner: receipt of a payment request. Sub: contractor's receipt of each periodic or final payment.
Interest or penalty. 1% per month after notice of § 45-1205
Exemptions. 'Owner does not include the State of Nebraska'; contractor excludes those working on State contracts or state/federal-aid projects where the state pays on the subdivision's behalf
Key sentence. Owner includes a person, an entity, or any political subdivision of this state. Owner does not include the State of Nebraska;
Notes. Political subdivision owners follow the 30-day / 10-day rules in § 45-1203. Claims against political subdivisions must be filed within 180 days after substantial completion (45-1210). State-owned project payment timing was not checked.
Nevada
Pay if paid: Limited
NRS 624.606 to 624.630 (624.609, 624.624, 624.626, 624.628, 624.630). Last checked October 17, 2026.
Pay when paid and timing. Pay-if-paid or pay-when-paid clause does not stop the sub's right to stop work (and later terminate) if unpaid within 45 days after the 25th day of the month the sub billed; sub otherwise paid by the earlier of the schedule date / 30 days after request, or 10 days after the contractor is paid
Owner pays the contractor. On the date in the written payment schedule; if none or oral agreement, 21 days after the request for payment
Contractor pays the sub. Earlier of the scheduled date (or 30 days after request if no schedule) or 10 days after the contractor receives payment for the sub's work
What starts the clock. Owner: payment schedule or submission of request. Sub: earlier of schedule/request date or contractor's receipt of payment.
Interest or penalty. Interest from the due date at the higher of the agreed rate or the prime rate at the largest bank in Nevada plus 4% (624.630)
Key sentence. A higher-tiered contractor fails to pay the lower-tiered subcontractor within 45 days after the 25th day of the month in which the lower-tiered subcontractor submits a request for payment, even if the higher-tiered contractor has not been paid and the agreement contains a provision which requires the higher-tiered contractor to pay the lower-tiered subcontractor only if or when the higher-tiered contractor is paid;
Notes. Excerpt is NRS 624.626(1)(b), one of the triggers for the sub's right to stop work on 10 days' written notice. NRS 624.628: provisions that waive or limit rights under 624.624-624.630 or relieve the higher-tiered contractor of those obligations are 'against public policy and is void and unenforceable.' 624.630 last amended 2005.
Pay if paid: No statute found
NRS 338.550, 338.560, 338.565. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor disburses money paid under ch. 338, including interest, to subs within 10 days after receiving it
Contractor pays the sub. 10
What starts the clock. Contractor's receipt of a progress or retainage payment from the public body
Interest or penalty. Interest under NRS 338.565 if payment is more than 10 days late (rate not captured)
Key sentence. Each contractor shall disburse money paid to the contractor pursuant to this chapter, including any interest which the contractor receives, to his or her subcontractors and suppliers within 10 days after the contractor receives the money, in direct proportion to the subcontractors’ and suppliers’ basis in the progress bill or retainage bill and any accrued interest thereon.
Notes. Withholding requires written notice within 10 days (338.560). The public body's own payment deadline (NRS 338.520 or similar) was not read, so that cell is blank. 338.550 added 1987, amended 1999.
New Hampshire
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Read all 22 section pages of RSA ch. 447 (liens for labor and materials) and searched for payment-timing, interest, subcontractor-payment and condition language: none set payment deadlines or address pay-if-paid. No separate private prompt-payment chapter was located.
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Searched RSA ch. 21-I (state purchasing, including public works provisions) and RSA ch. 447 (including public-works bond sections) for payment deadlines to contractors or subcontractors: none found. Other titles (e.g. municipal or highway chapters) were not searched.
New Jersey
Pay if paid: No statute found
N.J.S.A. 2A:30A-1, 2A:30A-2 (Prompt Payment Act). Last checked October 17, 2026.
Pay when paid and timing. Unless otherwise agreed in writing, prime pays sub within 10 calendar days of receipt of each periodic, final or retainage payment
Owner pays the contractor. 30 calendar days after the billing date (billing deemed approved 20 days after receipt unless a written statement of withholding is given)
Contractor pays the sub. 10 calendar days (unless the parties otherwise agree in writing)
What starts the clock. Owner: billing date (approved and certified billing). Sub: prime's receipt of each periodic, final or retainage payment, after the sub's work is accepted.
Interest or penalty. Prime rate plus 1%; right to suspend after 7 calendar days' written notice; reasonable costs and attorney fees to prevailing party
Exemptions. Interest and suspension provisions do not apply to certain federally funded transportation projects (high-risk grantee); resident homeowner rights preserved
Key sentence. If a subcontractor or subsubcontractor has performed in accordance with the provisions of its contract with the prime contractor or subcontractor and the work has been accepted by the owner, the owner's authorized approving agent, or the prime contractor, as applicable, and the parties have not otherwise agreed in writing, the prime contractor shall pay to its subcontractor and the subcontractor shall pay to its subsubcontractor within 10 calendar days of the receipt of each periodic payment, final payment or receipt of retainage monies, the full amount received for the work of the subcontractor or subsubcontractor based on the work completed or the services rendered under the applicable contract.
Notes. Read via the Legislature's statutes search (NJ Statutes Unannotated, updated through P.L.2026, c.50); the viewer has no stable per-section URL. The Act does not address pay-if-paid clauses. L.1991, c.133; amended 2006, c.96.
Pay if paid: No statute found
N.J.S.A. 2A:30A-2. Last checked October 17, 2026.
Pay when paid and timing. Same Prompt Payment Act: 10 calendar days after receipt of payment, unless otherwise agreed in writing
Owner pays the contractor. 30 calendar days after the billing date; public entities whose governing body must vote may approve at the next scheduled public meeting and pay in the subsequent payment cycle, if stated in the bid specifications and contract
Contractor pays the sub. 10 calendar days
What starts the clock. Owner: billing date. Sub: prime's receipt of payment.
Interest or penalty. Prime rate plus 1%
Exemptions. Federally funded transportation projects in the high-risk grantee situation (interest and suspension provisions)
Key sentence. except that in the case of a public or governmental entity that requires the entity's governing body to vote on authorizations for each periodic payment, final payment or retainage monies, the amount due may be approved and certified at the next scheduled public meeting of the entity's governing body, and paid during the entity's subsequent payment cycle, provided this exception has been defined in the bid specifications and contract documents.
Notes. The Act's text expressly addresses public or governmental entities as owners. Separate public-contract statutes (e.g. Local Public Contracts Law) were not checked for additional timing rules.
New Mexico
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
New York
Pay if paid: No statute found
N.Y. Gen. Bus. Law §§ 756, 756-a, 757 (Prompt Payment Act, Article 35-E). Last checked October 17, 2026.
Pay when paid and timing. Contractor pays sub the amount received for its work seven days after receipt of good funds for each interim or final payment
Owner pays the contractor. 30 days after approval of the invoice (owner approves or disapproves within 12 business days of delivery); 7 days after receipt of good funds if payment is contingent on lender approval
Contractor pays the sub. 7
What starts the clock. Owner: approval of the invoice. Sub: contractor's receipt of good funds for each interim or final payment.
Exemptions. Projects under $150,000 aggregate cost; public works; one-, two- or three-family dwellings; residential tract developments of 100 or fewer one- or two-family homes; residential projects of 4,500 sq ft or less; certain government-assisted affordable residential projects under 75 units
Key sentence. When a subcontractor has performed in accordance with the provisions of its construction contract, the contractor shall pay to the subcontractor, and each subcontractor shall in turn pay to its subcontractors, the full or proportionate amount of funds received from the owner for each subcontractor's work and materials based on work or services provided under the construction contract, seven days after receipt of good funds for each interim or final payment, provided all contractually required documentation and waivers are received.
Notes. § 757(4) voids contract terms 'establishing payment provisions which differ from those established in subdivision three of section seven hundred fifty-six-a', and § 757(2) voids clauses barring suspension for nonpayment. The Act does not address pay-if-paid; New York treats it in case law (per secondary sources), which was not read on an official court site. The interest rate under the Act was not captured. § 757 most recent revision 2025-12-26 per the official page.
Pay if paid: No statute found
N.Y. State Fin. Law §§ 139-f, 179-f. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays subs within 7 calendar days of receipt of any payment from the public owner
Owner pays the contractor. State agencies: required payment date 30 calendar days, excluding legal holidays (15 for qualifying small businesses invoicing electronically)
Contractor pays the sub. 7 calendar days
What starts the clock. Owner: required payment date under § 179-f. Sub: contractor's receipt of payment from the public owner.
Interest or penalty. State agencies pay interest under §§ 179-f/179-g, shared pro rata with subs; contractor owes interest to subs starting the day after the 7-day period
Exemptions. No interest if delay results from a lien, attachment or other legal process, or if interest would be under $10
Key sentence. Within seven calendar days of the receipt of any payment from the public owner, the contractor shall pay each of his subcontractors and materialmen the proceeds from the payment representing the value of the work performed and/or materials furnished by the subcontractor and/or materialman and reflecting the percentage of the subcontractor's work completed or the materialman's material supplied in the requisition approved by the owner and based upon the actual value of the subcontract or purchase order less an amount necessary to satisfy any claims, liens or judgments against the subcontractor or materialman which have not been suitably discharged and less any retained amount as hereafter described.
Notes. § 179-f applies to state agencies; municipal prompt-payment rules (e.g. Gen. Municipal Law § 106-b) were not checked. § 179-f most recent revision 2017-04-14 per the official page.
North Carolina
Pay if paid: Void
N.C. Gen. Stat. §§ 22C-1 to 22C-6 (22C-2, 22C-3, 22C-5). Last checked October 17, 2026.
Pay when paid and timing. Pay-if-paid unenforceable; timing: sub paid within 7 days of receipt of each periodic or final payment
Contractor pays the sub. 7
What starts the clock. Contractor's receipt of each periodic or final payment
Interest or penalty. 1% per month starting the 8th day
Exemptions. Residential contractors (G.S. 87-10(1a)); residential improvements exempt under G.S. 83A-13(c)(1); residential projects of 12 or fewer units
Key sentence. Payment by the owner to a contractor is not a condition precedent for payment to a subcontractor and payment by a contractor to a subcontractor is not a condition precedent for payment to any other subcontractor, and an agreement to the contrary is unenforceable.
Notes. No private owner-to-contractor deadline is set in ch. 22C. Contractor may withhold for listed reasons (22C-4). 1987 (Reg. Sess., 1988) c. 946; 22C-2 amended 1991 c. 620.
Pay if paid: Void
N.C. Gen. Stat. § 143-134.1; § 22C-2. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: prime pays sub within 7 days of receipt of each periodic or final payment; ch. 22C anti-pay-if-paid rule has no public-project exclusion
Owner pays the contractor. Final payment within 45 days after acceptance, certification of completion, or occupancy, whichever is first; periodic payments by the contract due date
Contractor pays the sub. 7
What starts the clock. Owner: acceptance/certification/occupancy (final) or contract due date (periodic). Sub: prime's receipt of payment.
Interest or penalty. 1% per month (owner from the 46th day on final payment; prime to sub from the 8th day)
Exemptions. Department of Transportation contracts under G.S. 136-28.1
Key sentence. Within seven days of receipt by the prime contractor of each periodic or final payment, the prime contractor shall pay the subcontractor based on work completed or service provided under the subcontract.
Notes. 'void' for public rests on § 22C-2, whose definitions of owner and contractor do not exclude public owners; ch. 22C excludes only certain residential work (22C-6). Applies to contracts let by a board or governing body of the State or any political subdivision.
North Dakota
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Read N.D.C.C. ch. 13-01.1 (prompt payment), which applies only to state agencies, political subdivisions and school districts and their contractors, and searched ch. 48-01.2 (public improvements). No private-project prompt-payment or pay-if-paid statute was found. The lien chapter (35-27) was not searched for payment timing.
Pay if paid: No statute found
N.D.C.C. §§ 13-01.1-01, 13-01.1-02, 13-01.1-06; § 48-01.2-14. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: business pays sub within 45 days after payment from the agency
Owner pays the contractor. Contract date; if none, 45 days after receipt of the invoice
Contractor pays the sub. 45 (unless otherwise provided by contract)
What starts the clock. Owner: receipt of the invoice. Sub: business's receipt of payment from the agency.
Interest or penalty. 1.75% per month unless the contract specifies another rate, compounding every 45 days (ch. 13-01.1); for public improvements, interest at 2 points below the Bank of North Dakota prime rate if an approved estimate or final payment is unpaid more than 30 days (48-01.2-14)
Exemptions. Chapter 13-01.1 interest does not apply where nonpayment results from a dispute over the amount due or contract compliance (13-01.1-05)
Key sentence. Upon payment by a state agency, political subdivision, school district, or agency of the United States, a business which has acquired under contract, property or services in connection with its contract with such agency, political subdivision, or school district, from a subcontractor or supplier, shall pay such subcontractor or supplier within forty-five days after payment from such agency.
Notes. Excerpt from the official chapter PDF; stray spaces around hyphens in the PDF text layer ('forty - five') were removed. 48-01.2-14 runs from approval of the estimate or completion and acceptance.
Ohio
Pay if paid: No statute found
Ohio Rev. Code § 4113.61. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays sub within 10 calendar days after receipt of payment from the owner (if the sub billed in time to be included)
Contractor pays the sub. 10 calendar days
What starts the clock. Contractor's receipt of payment from the owner
Interest or penalty. 18% per annum beginning the 11th day after receipt of payment
Exemptions. Retainage and amounts needed to resolve disputed liens or claims may be withheld
Key sentence. If a subcontractor or material supplier submits an application or request for payment or an invoice for materials to a contractor in sufficient time to allow the contractor to include the application, request, or invoice in the contractor's own pay request submitted to an owner, the contractor, within ten calendar days after receipt of payment from the owner for improvements to property, shall pay to the:
Notes. § 4113.62 voids waivers of surety bond rights, no-damages-for-delay clauses caused by the owner, and out-of-state law/forum clauses, but does not address pay-if-paid; Ohio treats pay-if-paid in case law, which was not read on an official court site. No private owner deadline located in these sections. § 4113.61 effective September 29, 2011.
Pay if paid: No statute found
Ohio Rev. Code §§ 153.13, 153.14; § 4113.61. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: 10 calendar days after receipt of payment (§ 4113.61)
Owner pays the contractor. 30 days on approved estimates
Contractor pays the sub. 10 calendar days
What starts the clock. Owner: filing of the approved estimate. Sub: contractor's receipt of payment.
Interest or penalty. Owner: interest at the average prime rate at commercial banks in the nearest city over 100,000 population. Contractor: 18% per annum (§ 4113.61)
Exemptions. Does not limit the Director of Transportation's authority under ch. 5525
Key sentence. Payment on approved estimates filed with the owner or its representative shall be made within thirty days.
Notes. Applies to owners under §§ 153.01 or 153.12 (state public improvements). Whether § 4113.61 reaches public owners was not separately confirmed from its definitions. §§ 153.13, 153.14 effective September 30, 2025.
Oklahoma
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Checked the Fair Pay for Construction Act, 61 O.S. §§ 221-228, whose 'construction contract' and 'owner' definitions (§ 222) cover only public improvements and government owners. No private-project prompt-payment or pay-if-paid statute was located; the Title 42 lien statutes and Title 15 contract statutes were not searched for payment timing.
Pay if paid: No statute found
61 O.S. §§ 221-228 (Fair Pay for Construction Act) (§§ 223, 224, 225). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: prime pays sub within 10 calendar days after receiving its corresponding payment; sub pays sub-sub within 7
Owner pays the contractor. 30 calendar days after a proper invoice is submitted (contracts over $25,000)
Contractor pays the sub. 10 calendar days (subcontractor to sub-subcontractor: 7)
What starts the clock. Owner: submission of a proper invoice. Sub: prime contractor's receipt of its corresponding payment.
Interest or penalty. Right to suspend or terminate if not paid within 49 calendar days of invoice submission, on 7 days' written notice (§ 225); interest provisions not captured
Exemptions. Owner payment rule applies to construction contracts exceeding $25,000
Key sentence. If a subcontractor or material supplier has performed in accordance with the provisions of a construction contract, the prime contractor shall make payment to the subcontractor or material supplier no later than ten (10) calendar days after the prime contractor receives its corresponding payment for the work performed.
Notes. Owner must give reasons for any invoice reduction within 14 calendar days (§ 223(B)). 'Owner' means any state government entity, municipality, township or public trust. Laws 2004, SB 1561, c. 256; renumbered from 15 O.S. § 624 by Laws 2005, c. 92.
Oregon
Pay if paid: No statute found
ORS 701.620 to 701.645 (701.625, 701.630, 701.640). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: original contractor pays sub no later than 7 days after receiving owner payment for the sub's work
Owner pays the contractor. Progress: 14 days after the billing is received. Final: 7 days after the owner approves the work. Longer only with the statutory 'Notice of Extended Payment Provision' on each page of drawings and specifications.
Contractor pays the sub. 7 (calendar days)
What starts the clock. Owner: receipt of the billing (progress) or approval of the work (final). Sub: original contractor's receipt of owner payment for the sub's work.
Exemptions. Owner progress payments required for work expected to take 60 or more days (optional below 60 days)
Key sentence. If a subcontractor has performed in accordance with a construction contract, and the original contractor receives payment from the owner for work performed by the subcontractor, the original contractor shall pay the subcontractor for that work no later than seven days after the original contractor receives the payment.
Notes. 701.630(1): performance 'is entitled to payment from the party with whom the original contractor, subcontractor or material supplier contracts.' 701.640 bars out-of-state law/forum clauses and clauses barring suspension or termination for nonpayment; no section expressly addresses pay-if-paid. Interest provisions in later subsections were not captured. 2003 c.675; 2011 c.553.
Pay if paid: No statute found
ORS 279C.570, 279C.580. Last checked October 17, 2026.
Pay when paid and timing. Required subcontract clause: contractor pays first-tier sub within 10 days out of amounts the contracting agency pays the contractor
Owner pays the contractor. Monthly progress payments; interest starts 30 days after receipt of the invoice or 15 days after approval, whichever is earlier
Contractor pays the sub. 10
What starts the clock. Owner: receipt of the invoice or approval of payment. Sub: amounts paid by the contracting agency to the contractor.
Interest or penalty. Three times the discount rate on 90-day commercial paper at the Federal Reserve Bank for Oregon's district, capped at 30%, paid automatically; contractor-to-sub interest penalty clause required (279C.580(3)(d))
Exemptions. 'No contracting agency is exempt from the provisions of this section'
Key sentence. A payment clause that obligates the contractor to pay the first-tier subcontractor for satisfactory performance under the subcontract within 10 days out of amounts the contracting agency pays to the contractor under the public improvement contract.
Notes. Agency must flag defective invoices or good-faith disputes within 15 days (279C.570(4)). Contractor-sub payment disputes do not make the agency a party (279C.580(2)).
Pennsylvania
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Pay if paid: No statute found
62 Pa.C.S. §§ 3931-3939 (3932, 3933, 3934, 3938); § 3941. Last checked October 17, 2026.
Pay when paid and timing. Contractor pays sub the amount received for its work 14 days after receipt of a progress payment; contractor must disclose the government's payment due dates before subcontracting
Owner pays the contractor. Contract due date; if none, 45 calendar days after the application for payment is received. Final payment within 45 days after substantial completion certification (§ 3941)
Contractor pays the sub. 14
What starts the clock. Owner: receipt of the application for payment. Sub: contractor's receipt of a progress payment.
Interest or penalty. Interest at the Secretary of Revenue's overdue-tax rate (§ 3932(c)); final payment interest 6% (no retainage) or 10% (with retainage) per annum (§ 3941(b)); penalty and attorney fees for bad-faith withholding (§ 3935, details not captured)
Exemptions. § 3932 does not apply when nonpayment is caused by failure to enact a budget or failure of federal/state/local funding for the project; certain distressed municipalities excluded (§ 3938)
Key sentence. When a subcontractor has performed in accordance with the provisions of the contract, a contractor shall pay to the subcontractor, and each subcontractor shall in turn pay to its subcontractors, the full or proportional amount received for each such subcontractor's work and material, based on work completed or services provided under the subcontract, 14 days after receipt of a progress payment.
Notes. Deficiency withholding must be noticed within 15 calendar days (§ 3934(b)). Out-of-state law or forum clauses are unenforceable (§ 3937). No section addresses pay-if-paid. Year not captured from the chapter page.
Rhode Island
Pay if paid: No statute found
R.I. Gen. Laws § 37-12-10.1 (retainage). Last checked October 17, 2026.
Pay when paid and timing. Retainage only: each lower tier may take 7 days longer than the tier above to pay a retainage application
Owner pays the contractor. Retainage: 30 days after submission of the application (submitted after 60 days post substantial completion); no progress-payment deadline found
Contractor pays the sub. Retainage: 7 days longer than the tier above
What starts the clock. Submission of a written application for payment of retainage
Key sentence. Subject to subsection (f), an application for payment of retainage shall be paid not later than thirty (30) days following submission of the application, or on the next payment cycle in accordance with the established state revolving fund (SRF) payment schedule; provided, however, that the time period for payment of an application for retainage by the person at each tier of contract below the owner of the project may be extended by seven (7) days longer than the time period applicable to the person at the tier
Notes. Excerpt ends where the captured text was cut off. For private progress payments, searched every section of R.I. Gen. Laws ch. 34-28 (mechanics' liens) and ch. 37-12 for payment-timing sentences: only retainage timing (37-12-10.1) and lien-related provisions were found. No pay-if-paid statute found.
Pay if paid: No statute found
R.I. Gen. Laws §§ 42-11.1-3, 42-11.1-5 (Prompt Payment by Department of Administration). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor pays subs within 7 days of receipt of payment by the state (setoffs allowed)
Owner pays the contractor. 30 calendar days of receipt of a proper invoice (interest required payment date: 30 working days after receipt, § 42-11.1-5(b))
Contractor pays the sub. 7
What starts the clock. Owner: receipt of a proper invoice (or later receipt of goods/services). Sub: contractor's receipt of payment by the state.
Interest or penalty. Interest under § 42-11.1-6 (rate not captured); contract waivers of interest are void
Exemptions. Payments under eminent domain law and other listed categories (§ 42-11.1-12); interest under $10 not paid
Key sentence. Each contractor shall make payment to subcontractors within seven (7) days of receipt of payment by the state; provided, however, that the contractor may setoff a payment due to a subcontractor by an amount equal to the amount of an unpaid legally enforceable debt owed by the subcontractor to the contractor or any amount that the contractor is entitled to withhold under the terms of the contract entered into by the contractor and subcontractor,
Notes. State agencies only; municipal prompt-payment rules were not checked. § 42-11.1-3 history: P.L. 1987 ch. 73 through P.L. 2024 ch. 228/229, effective June 24, 2024. Excerpt is the first part of § 42-11.1-3(b); the remainder lists further setoff grounds.
South Carolina
Pay if paid: Void
S.C. Code §§ 29-6-10 to 29-6-60 (29-6-30, 29-6-50); § 29-6-230. Last checked October 17, 2026.
Pay when paid and timing. Owner payment is not a condition precedent to sub payment; any contrary agreement unenforceable. Timing: sub paid within 7 days of receipt of each periodic or final payment
Owner pays the contractor. 21 days of receipt of a pay request (undisputed amount)
Contractor pays the sub. 7
What starts the clock. Owner: receipt of the pay request. Sub: contractor's receipt of each periodic or final payment.
Interest or penalty. 1% per month from the due date, only if the payer was notified of § 29-6-50 when payment was requested
Exemptions. Residential homebuilders; residential projects of 16 or fewer units; private owners whose improvements are not financed by a nonowner (§ 29-6-60). On private projects, parties may set different payment periods and interest if §§ 29-6-30 and 29-6-50 are waived by section number in conspicuous bold or underlined type
Key sentence. The payment by the owner to the contractor or the payment by the contractor to another subcontractor or supplier is not, in either case, a condition precedent for payment to the construction subcontractor. Any agreement to the contrary is not enforceable.
Notes. § 29-6-230 is in Article 3 (Subcontractors' and Suppliers' Payment Protection), 2000 Act No. 295. § 29-6-30 timing excerpt: 'within seven days of receipt by the contractor or subcontractor of each periodic or final payment'. Article 1: 1990 Act No. 426.
Pay if paid: Void
S.C. Code §§ 29-6-10, 29-6-30, 29-6-50, 29-6-230. Last checked October 17, 2026.
Pay when paid and timing. Same rules: § 29-6-10 'Owner' includes state, local and municipal government; § 29-6-230 bars pay-if-paid
Owner pays the contractor. 21 days of receipt of a pay request
Contractor pays the sub. 7
What starts the clock. Owner: receipt of the pay request. Sub: contractor's receipt of each periodic or final payment.
Interest or penalty. 1% per month from the due date (after notice of § 29-6-50); the contractual waiver option is limited to private projects
Key sentence. "Owner" includes any state, local, or municipal government agencies, instrumentalities, or entities.
Notes. Public owners follow the same 21-day / 7-day schedule and cannot use the private-project waiver in § 29-6-50. The state procurement code (§ 11-35-3030) was not re-read for additional payment terms.
South Dakota
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Checked SDCL ch. 5-26 (Prompt Payment Act), which applies only to government agencies and their contractors, and searched SDCL ch. 44-9 (mechanics' liens) for payment-timing language combining a day count, payment and contractor/subcontractor: none found. § 44-9-6.1 (interest on lien amounts) concerns lien amounts, not payment deadlines.
Pay if paid: No statute found
SDCL §§ 5-26-2, 5-26-3, 5-26-6. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: business pays sub within 30 days after receiving payment from the agency (unless the subcontract provides otherwise as to interest)
Owner pays the contractor. Contract date; if none, 45 days after receipt and written acceptance of the property or services and receipt of the invoice
Contractor pays the sub. 30
What starts the clock. Owner: receipt and written acceptance plus receipt of the invoice. Sub: business's receipt of payment from the agency.
Interest or penalty. Category B rate under § 54-3-16 (or contract rate); on unpaid invoices, accrues from the 30th day after receipt once the invoice is more than 45 days unpaid
Exemptions. Transactions between government agencies (§ 5-26-8); disputed payments with notice (§ 5-26-5)
Key sentence. Upon payment by an agency, a business that has acquired under contract, property or services in connection with the business's contract with the agency from a subcontractor or supplier, shall pay the subcontractor or supplier within thirty days after receiving payment from the agency.
Notes. 'Agency' includes state agencies, counties, municipalities and public school districts. § 5-26-6 last amended SL 2018, ch 47.
Tennessee
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Not verified yet. The statute text could not be read from the official site on October 17, 2026, so no figure is printed. Official source.
Texas
Pay if paid: Limited
Tex. Bus. & Com. Code §§ 56.001-56.057; Tex. Prop. Code §§ 28.001-28.010. Last checked October 17, 2026.
Pay when paid and timing. Contingent payment clauses are enforceable only within statutory limits: not where nonpayment is the payor's fault, after the payee's written objection notice (sent after the 45th day following a payment request), in sham relationships, or where unconscionable; never a basis to invalidate a mechanic's lien
Owner pays the contractor. 35 (single-family residence contracts may allow up to 60)
Contractor pays the sub. 7
What starts the clock. Owner: receipt of a written payment request. Sub: contractor's receipt of the owner's payment.
Interest or penalty. 1.5% per month (Prop. Code § 28.004); costs and attorney's fees at the court's discretion
Exemptions. Prop. Code ch. 28 'Owner' excludes governmental entities; Bus. & Com. Code ch. 56 does not apply to contracts solely for design services (other exclusions in § 56.002 not captured)
Key sentence. A contingent payor or its surety may not enforce a contingent payment clause to the extent that the obligor's nonpayment to the contingent payor is the result of the contractual obligations of the contingent payor not being met, unless the nonpayment is the result of the contingent payee's failure to meet the contingent payee's contractual requirements.
Notes. § 56.056: assertion of a contingent payment clause is an affirmative defense. § 56.004: waiver of the chapter is void. Prop. Code § 28.002(b): contractor payment 'must be made not later than the seventh day after the date the contractor receives the owner's payment.' Prop. Code ch. 28: Acts 1993 ch. 479, amended 1999 ch. 805.
Pay if paid: Limited
Tex. Gov't Code §§ 2251.021, 2251.022, 2251.025; Tex. Bus. & Com. Code ch. 56. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: vendor pays sub its share not later than the 10th day after receiving payment from the governmental entity
Owner pays the contractor. Overdue on the 31st day after the later of receipt of goods, completion of service, or receipt of invoice (46th day for political subdivisions whose governing body meets monthly or less)
Contractor pays the sub. 10
What starts the clock. Owner: later of delivery, completion, or receipt of invoice. Sub: vendor's receipt of payment.
Interest or penalty. Interest from the overdue date at the rate in effect on September 1 of that fiscal year (§ 2251.025); attorney fees to prevailing party (§ 2251.043); waivers void (§ 2251.004)
Exemptions. Bona fide disputes (an audit lasting more than 60 days after substantial completion is not a bona fide dispute for public works)
Key sentence. A vendor who receives a payment from a governmental entity shall pay a subcontractor the appropriate share of the payment not later than the 10th day after the date the vendor receives the payment.
Notes. 'limited' for public applies Bus. & Com. Code ch. 56, whose definitions (construction of improvements to real property) are not limited to private projects; the full § 56.002 exclusion list was not captured, so confirm applicability to public contracts. § 2251.021 last amended Acts 2019, ch. 399; § 2251.022 Acts 1993 ch. 268.
Utah
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Checked Utah Code § 13-8-5 (retention proceeds on private and public construction; governs retention release only) and Title 15 ch. 6 (Prompt Payment Act, state agencies only). No private progress-payment deadline or pay-if-paid statute was located; the mechanics' lien chapter (38-1a) was not searched for payment timing.
Pay if paid: No statute found
Utah Code §§ 15-6-2, 15-6-3, 15-6-5 (Prompt Payment Act). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: business pays sub within 30 days after payment from the state agency
Owner pays the contractor. Contract date; if none, 60 days after receipt of the invoice (state agencies)
Contractor pays the sub. 30
What starts the clock. Owner: receipt of the invoice. Sub: business's receipt of payment from the agency.
Interest or penalty. State agency: 2% above the IRS refund-claim rate, compounding every 60 days. Contractor to sub: 15.5% per annum if not paid within 45 days (accruing from the 31st day) unless the subcontract provides otherwise
Exemptions. Disputed payments (§ 15-6-4); other exceptions in § 15-6-6 (not read)
Key sentence. Upon payment by an agency of the state of Utah or by an agency of the United States, a business which has acquired under contract, property or services in connection with its contract with such an agency from a subcontractor or supplier, shall pay such subcontractor or supplier within 30 days after payment from such agency.
Notes. State agencies only; local government payment timing was not checked. The statute says 30 days to pay but interest is due if not paid within 45 days, accruing from the 31st day, as written. § 15-6-5 enacted 1983 ch. 300.
Vermont
Pay if paid: No statute found
9 V.S.A. §§ 4001-4009 (4002, 4003, 4007). Last checked October 17, 2026.
Pay when paid and timing. Sub paid the amount received for its work 7 days after receipt of each progress or final payment or 7 days after the sub's invoice, whichever is later; nondisclosure of the owner's due date makes the contractor pay as though the owner paid on time
Owner pays the contractor. 20 days after end of billing period or delivery of invoice, whichever is later (except as otherwise agreed)
Contractor pays the sub. 7
What starts the clock. Owner: end of billing period or delivery of invoice. Sub: later of contractor's receipt of payment or receipt of the sub's invoice.
Interest or penalty. Interest at the 12 V.S.A. § 2903(b) rate; in arbitration or litigation, an added penalty of 1% per month on sums wrongfully withheld; attorney's fees to substantially prevailing party
Exemptions. Materials bought by a natural person for work on his or her own property (§ 4009); federal-aid variances (§ 4008)
Key sentence. Notwithstanding any contrary agreement, when a subcontractor has performed in accordance with the provisions of its contract, a contractor shall pay to the subcontractor, and each subcontractor shall in turn pay to its subcontractors, the full or proportional amount received for each such subcontractor’s work and materials based on work completed or service provided under the subcontract, seven days after receipt of each progress or final payment or seven days after receipt of the subcontractor’s invoice, whichever is later.
Notes. § 4003(a): 'Performance by a subcontractor in accordance with the provisions of its contract shall entitle it to payment from the party with which it contracts.' The Act does not expressly address pay-if-paid. Added 1991, No. 74, eff. Jan. 1, 1992.
Pay if paid: No statute found
9 V.S.A. §§ 4001(3), 4002, 4003. Last checked October 17, 2026.
Pay when paid and timing. Same Prompt Pay Act: 7 days after receipt of payment or the sub's invoice, whichever is later
Owner pays the contractor. 20 days after end of billing period or delivery of invoice, whichever is later (except as otherwise agreed)
Contractor pays the sub. 7
What starts the clock. Owner: end of billing period or delivery of invoice. Sub: later of receipt of payment or the sub's invoice.
Interest or penalty. Interest at the 12 V.S.A. § 2903(b) rate; 1% per month penalty on wrongful withholding
Exemptions. Federal-aid variances (§ 4008)
Key sentence. “Owner” shall also include the State of Vermont and instrumentalities and subdivisions of the State of Vermont including municipalities and school districts having an interest in such real property.
Notes. The definition of 'owner' brings the State, municipalities and school districts under the same Act, so the private-row terms apply to public owners.
Virginia
Pay if paid: Void
Va. Code § 11-4.6. Last checked October 17, 2026.
Pay when paid and timing. Pay-if-paid unenforceable unless the paying party is insolvent or a debtor in bankruptcy; sub paid within the earlier of 60 days after invoice or 7 days after the contractor receives payment
Owner pays the contractor. 60 days after receipt of an invoice following satisfactory completion of the invoiced work (withholding notice due within 45 days)
Contractor pays the sub. Earlier of 60 days after the sub's invoice or 7 days after receipt of owner payment (withholding notice due within 50 days)
What starts the clock. Owner: receipt of invoice after satisfactory completion. Sub: earlier of invoice + 60 days or contractor's receipt of payment + 7 days.
Interest or penalty. Interest penalties consistent with § 2.2-4355
Exemptions. 'Owner' excludes public bodies; contracts solely for professional services; retainage provisions unaffected; insolvency or bankruptcy of the paying party
Key sentence. Payment by the party contracting with the contractor shall not be a condition precedent to payment to any subcontractor, regardless of that contractor's receiving payment for amounts owed to that contractor, unless the party contracting with the contractor is insolvent or a debtor in bankruptcy as defined in § 50-73.79. Any provision in a contract contrary to this section shall be unenforceable.
Notes. Classified 'void' because the statute makes such provisions unenforceable, with the insolvency/bankruptcy exception noted. The section's effective-date or applicability subsection was not captured; confirm which contracts it reaches.
Pay if paid: Void
Va. Code §§ 2.2-4352, 2.2-4354, 2.2-4355. Last checked October 17, 2026.
Pay when paid and timing. Contractor is liable for the sub's full amount within 60 days of invoice even if not paid by the agency; within 7 days of receipt of agency payment, contractor must pay the sub's share or give written notice of withholding
Owner pays the contractor. Localities: contract date, or if none, not more than 45 days after goods/services are received or the invoice is rendered, whichever is later. State agencies: interest after 7 days past the payment date (state payment-date section not read)
Contractor pays the sub. 7 days after receipt of agency payment (or written notice of withholding); in any event within 60 days of the sub's invoice
What starts the clock. Owner: receipt of goods/services or invoice. Sub: contractor's receipt of agency payment; backstop 60 days after the sub's invoice.
Interest or penalty. Contractor to sub: 1% per month unless the contract provides otherwise. State agency: prime rate (WSJ), capped at the § 58.1-1812 rate. Localities: finance charges up to 1% per month
Exemptions. Contracts solely for professional services with A/E firms; retainage provisions; disputed amounts
Key sentence. Payment by the party contracting with the contractor shall not be a condition precedent to payment to any lower-tier subcontractor, regardless of that contractor's receiving payment for amounts owed to that contractor.
Notes. § 2.2-4354(1): 'Any provision in a construction contract contrary to this section shall be unenforceable.' Applies to contracts awarded by state agencies and local government agencies under § 2.2-4352. History: 1990 c. 824 through 2023 cc. 675, 676.
Washington
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. RCW 39.04.250 and RCW 39.76 apply to public works and public bodies only. RCW ch. 60.04 (mechanics' and materialmen's liens) was read for the retainage project and contains no private progress-payment deadline; it was not re-searched for pay-if-paid language in this pass. No private prompt-payment statute was located.
Pay if paid: No statute found
RCW 39.04.250; RCW 39.76.011. Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: contractor or subcontractor pays its subs not later than 10 days after receipt of payment
Owner pays the contractor. Contract date, but not later than 30 days after receipt of a properly completed invoice or receipt of goods/services, whichever is later (grant/federal-funded: 30 days after the later of a compliant request or receipt of the funds)
Contractor pays the sub. 10
What starts the clock. Owner: receipt of a properly completed invoice or goods/services. Sub: contractor's receipt of payment.
Interest or penalty. Public body: 1% per month (at least $1 per month). Contractor: interest at the highest rate allowed under RCW 19.52.025 on wrongfully withheld funds, plus costs and attorneys' fees
Exemptions. Exceptions in RCW 39.76.020 (not read); good-faith disputes allow withholding up to 150% of the disputed amount
Key sentence. When payment is received by a contractor or subcontractor for work performed on a public work, the contractor or subcontractor shall pay to any subcontractor not later than ten days after the receipt of the payment, amounts allowed the contractor on account of the work performed by the subcontractor, to the extent of each subcontractor's interest therein.
Notes. Public body must give written notice of withholding within 8 working days of the payment request (39.76.011(2)(b)). Parties not involved in a dispute are entitled to full and prompt payment. RCW 39.04.250: 1992 c 223 s 5.
West Virginia
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Fetched every section page linked from W. Va. Code art. 38-2 (mechanics' liens), and also arts. 5-22, 6D-1 and 5A-3 (138 sections in all), and searched for sentences combining a day count, payment and contractor/subcontractor/invoice: no payment-timing or pay-if-paid rule found.
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Same search across W. Va. Code arts. 5-22 (public improvements), 6D-1 (public contracts), 5A-3 (purchasing division) and 38-2: no contractor or subcontractor payment deadline found. § 5A-3-54 and § 5A-3-55 are shown as repealed (Acts, 2010 Reg. Sess., Ch. 169). Other chapters (e.g. 14 or 12) were not searched.
Wisconsin
Pay if paid: Void
Wis. Stat. § 779.135(3). Last checked October 17, 2026.
Pay when paid and timing. Timing only, not a condition: clauses may delay sub payment until the prime is paid, but owner payment cannot be a condition precedent
Key sentence. Provisions making a payment to a prime contractor from any person who does not have a contractual agreement with the subcontractor, supplier, or service provider a condition precedent to a prime contractor’s payment to a subcontractor, supplier, or service provider. This subsection does not prohibit contract provisions that may delay a payment to a subcontractor until the prime contractor receives payment from any person who does not have a contractual agreement with the subcontractor, supplier, or service provider.
Notes. § 779.135 opens: 'The following provisions in contracts for the improvement of land in this state are void:' and sub. (3) is one of those provisions. No private prompt-payment day counts were found in ch. 779. History: 1993 a. 213; 2005 a. 204.
Pay if paid: No statute found
Wis. Stat. § 66.0135 (local governmental units); § 16.528 (state agencies). Last checked October 17, 2026.
Pay when paid and timing. Timing tied to receipt: principal contractor pays subs no later than 7 days after receipt of any payment from the agency
Owner pays the contractor. 30 days after receipt of a properly completed invoice or receipt and acceptance of the property or service, whichever is later (or a later date on the invoice)
Contractor pays the sub. 7
What starts the clock. Owner: receipt of a properly completed invoice or receipt and acceptance, whichever is later. Sub: principal contractor's receipt of payment from the agency.
Interest or penalty. Interest at the rate in § 71.82(1)(a), compounded monthly, from the 31st day (owner) and from the 8th day after receipt (contractor to sub)
Exemptions. Payments from federal moneys not yet received; contracts with other late-payment laws; intra-unit contracts; contracts with deviating terms disclosed in the original bid; good-faith disputes with timely notice (§ 66.0135(4))
Key sentence. A payment is timely if it is mailed, delivered or transferred to the subcontractor no later than 7 days after the principal contractor’s receipt of any payment from the agency.
Notes. § 16.528(2m)(a) has the same 7-day sentence for state agencies; § 16.528(2)(b)3. sets 30 days for state agency payment. § 779.135(3) voids pay-if-paid in 'contracts for the improvement of land in this state'; whether that reaches public contracts was not determined, so this row stays 'no statute found'.
Wyoming
No payment timing statute found in the sections checked. The contract controls. Official source, last checked October 17, 2026.
Checked. Searched the official compressed PDFs of Wyoming Titles 16, 29 (liens) and 40 (trade and commerce) for sentences combining a day count, payment and contractor/subcontractor. Only lien-filing deadlines (Title 29) and storm-repair consumer cancellation rules (Title 40) matched; no private progress-payment deadline or pay-if-paid rule found.
Pay if paid: No statute found
Wyo. Stat. §§ 16-6-702(a), 16-6-116(a), 16-6-1001(a)(iv). Last checked October 17, 2026.
Owner pays the contractor. Partial payments 'as stipulated in the contract document or as soon thereafter as practicable'; retained amounts and balance due on the 41st day after the substantial-completion notice is first published and posted
What starts the clock. Progress: contract terms. Retainage/balance: first publication and posting of the substantial-completion notice.
Exemptions. Contracts where federal or other funding sources impose inconsistent retention or payment requirements (§ 16-6-706)
Key sentence. A public entity awarding a contract for a public work shall authorize partial payments of the amount due under the contract as stipulated in the contract document or as soon thereafter as practicable, to the contractor if the contractor is satisfactorily performing the contract.
Notes. Read from the legislature's compressed Title 16 PDF (no history lines printed). § 16-6-1001(a)(iv): on capital construction projects, a progress payment may be issued after verification that subs and suppliers were paid through the previous progress payment. No contractor-to-sub payment deadline found in Title 16. The PDF text layer splits 'satisfactor ily'; removed in the excerpt.
What readers ask
What is retainage in construction?
Retainage is a share of each payment that the owner or the contractor holds back until the work is finished or accepted. State law sets a cap or a release rule in some states and leaves it to the contract in others.
Which states cap retainage?
The table below lists each state's cap or reserve for private and public work, with the statute and the official link. A state marked "No statute found" has no retainage statute in the sections checked, so the contract controls.
What does "Not verified yet" mean?
The statute text could not be read from the state's official site on the check date. The row prints no figure, because nothing unverified is published as law.
What is pay if paid?
A pay if paid clause makes the subcontractor's payment depend on the owner paying the contractor first. Pay when paid only sets the timing. The payment timing table below shows which states void or limit a pay if paid clause, by statute.
Which states void pay if paid clauses?
9 of the 102 private and public rows void one by statute, and 11 limit one. Rows marked "No statute found" have no pay if paid statute in the sections checked. Some of those states handle it through court decisions, which this page does not rely on.
Do states set a maximum number of days to pay?
Many states set a number of days for the owner to pay the contractor and for the contractor to pay the subcontractor. The days table below lists each one with the statute, and most let the contract set different terms unless the row says otherwise.
Is this legal advice?
No. Statutes change, so read the current text at the official link and ask a construction attorney before you rely on a row in a contract.
If you are quoting this page
Run On CFOS. Retainage and payment laws by state. 2026. Sulphur Prairie Operations, LLC. https://runoncfos.com/retainage-by-state. CC BY 4.0.
Figures on this page were last revised 2026-10-17. Published under CC BY 4.0, which permits reuse of any figure here, including commercially, as long as the credit above travels with it. The same figures in machine-readable form: /benchmarks.json.
