Prompt payment act construction by state: public works payment deadlines, interest and retainage caps
- Primary data
- State public works prompt payment and retainage statutes, 50 states and DC; federal Prompt Payment Act and FAR
- Data period
- Statutes in force on 2026-10-08; Treasury rate for July 1 to December 31, 2026
- Latest release used
- 2026-10-08
- Next release
- Quarterly re-check (next check January 2027, after the new Treasury rate is published)
- Geography
- United States: 50 states, the District of Columbia and federal contracts
- Sources
- 161 (151 Tier 1)
Prompt payment act construction by state rules give public owners a median 30 days to pay prime contractors (14 to 90 days across 49 jurisdictions) and primes a median 10 days to pay subcontractors. Late interest is usually 12 percent a year or an index rate, and 30 jurisdictions cap retainage at 5 percent.
Public works prompt payment and retainage rules by state
Checked Quarterly, and after each January and July Treasury rate notice. Last checked 2026-10-08. Entries are neutral records of public data; each links to its source record.
| State | Owner-to-prime deadline, prime-to-sub deadline, interest on late payment, retainage cap and reduction rule | Date | Evidence | Source |
|---|---|---|---|---|
| Alabama | Owner to prime: Monthly partial payments, no later than 35 days after the awarding authority accepts the estimate. Prime to sub: 7 days after receipt of a state payment unless the subcontract sets other terms (41-16-3). Interest: Rate assessed for underpayment of taxes (Code 40-1-44(a)). Retainage: Not more than 5 percent; no further retainage after 50 percent completion; none on ALDOT highway contracts. (Code of Alabama 39-2-12; Code of Alabama 41-16-3) | 2026-10-08 | statute | Record |
| Alaska | Owner to prime: 30 calendar days after a compliant payment request (21 days where grant or federal money is used, counted from receipt of the funds if later). Prime to sub: 8 working days after the prime is paid (about 11 calendar days). Interest: 10.5 percent a year (AS 45.45.010(a)); retainage also earns interest. Retainage: No statutory percentage cap located; the owner must pay interest on retainage (36.90.250). (Alaska Statutes 36.90.200 to 36.90.290; Alaska Statutes 45.45.010) | 2026-10-08 | statute | Record |
| Arizona | Owner to prime: 14 days after the estimate is certified; an estimate is deemed certified 7 days after submission (21 days from submission). Prime to sub: 7 days after each progress payment unless otherwise agreed in writing. Interest: 1 percent per month. Retainage: 10 percent; at 50 percent completion half is released and no more than 5 percent of later payments may be held. (A.R.S. 34-221) | 2026-10-08 | statute | Record |
| California | Owner to prime: 30 days after an undisputed, properly submitted payment request (state agencies and local agencies). Prime to sub: 7 days after each progress payment. Interest: Legal rate on judgments, 10 percent a year (CCP 685.010(a)). Retainage: 5 percent of each payment and of the contract price; retention released within 60 days after completion (7107). (Cal. Public Contract Code 7201; Cal. Public Contract Code 10261.5; Cal. Public Contract Code 20104.50; Cal. Public Contract Code 10262; Cal. Code of Civil Procedure 685.010; Cal. Public Contract Code 7107) | 2023-01-01 | statute | Record |
| Arkansas | Owner to prime: Processing limits of 5 working days each for the design professional, the agency and the Department of Finance and Administration on state projects (15 working days, about 21 calendar days). Prime to sub: No public-works deadline located. Interest: 8 percent a year penalty on the delayed request. Retainage: 5 percent on bonded contracts; the agency may stop withholding at 50 percent completion with satisfactory work. (Ark. Code 22-9-604; Ark. Code 19-4-1411) | 2026-10-08 | statute (FindLaw copy) | Record |
| Colorado | Owner to prime: Monthly partial payments on contracts over $150,000 (24-91-103); state executive-branch liabilities paid within 45 days (24-30-202(24)). Prime to sub: 7 calendar days after the prime is paid. Interest: 1 percent per month on late state payments. Retainage: Owner pays at least 95 percent of completed work (5 percent withheld) until final acceptance. (C.R.S. 24-91-103; C.R.S. 24-30-202) | 2026-10-08 | statute (FindLaw copy) | Record |
| Connecticut | Owner to prime: 45 days after a properly completed claim unless the contract sets a date (4a-71). Prime to sub: 15 days after the state pays (49-41c, cut from 30 days by P.A. 25-168); 30 days on bonded municipal public works (49-41a). Interest: State: monthly effective yield of the Short Term Investment Fund; prime to sub: 1 percent per month after notice (49-41a). Retainage: State agencies 7.5 percent, cut to 5 percent at 50 percent completion; DOT 2.5 percent; municipalities 5 percent (49-41b). (Conn. Gen. Stat. 4a-71; Conn. Gen. Stat. 49-41a and 49-41b; Conn. Gen. Stat. 49-41c, 2026 Supplement) | 2026-10-08 | statute | Record |
| Delaware | Owner to prime: 30 days after a valid invoice or receipt of the work, whichever is later (6516(d)). Prime to sub: No public-works deadline located in Title 29. Interest: Up to 12 percent a year, billed by the vendor. Retainage: 5 percent of the value of work completed; 60 percent of it may be released at completion (6962(d)(5)). (29 Del. C. 6516; 29 Del. C. 6962) | 2026-10-08 | statute | Record |
| District of Columbia | Owner to prime: 30 calendar days, excluding legal holidays, after a proper invoice. Prime to sub: 7 days after the District pays (pay or give written notice of withholding). Interest: Set by mayoral regulation, not less than 1 percent. Retainage: 10 percent until completion; after 50 percent completion the Mayor may stop or reduce it. (D.C. Code 2-221.02; D.C. Code 2-203.01) | 2026-10-08 | statute | Record |
| Florida | Owner to prime: State: invoice approved within 20 days and warrant issued within 40 days (215.422); local governments: 20 or 25 business days (218.735). Prime to sub: 10 days after the prime is paid (state and local). Interest: State: judgment rate under s. 55.03(1); local: 2 percent per month or the contract rate if higher. Retainage: 5 percent of each progress payment (state 255.078 and local 218.735(8)). (Fla. Stat. 215.422; Fla. Stat. 255.073; Fla. Stat. 255.078; Fla. Stat. 218.735) | 2026-10-08 | statute | Record |
| Georgia | Owner to prime: 15 days after a payment request (Prompt Pay Act, which covers government owners except very small counties and cities). Prime to sub: 10 days after the prime is paid. Interest: 1 percent per month, once the payer has been notified of the statute. Retainage: 5 percent of each progress payment on contracts entered on or after July 1, 2022 (DOT road work and jobs of $150,000 or 45 days or less excluded). (O.C.G.A. 13-10-80; O.C.G.A. 13-11-2; O.C.G.A. 13-11-4; O.C.G.A. 13-11-7) | 2022-07-01 | statute (FindLaw copy) | Record |
| Hawaii | Owner to prime: 30 calendar days after a proper statement or satisfactory performance, whichever is later. Prime to sub: 10 days after the prime is paid. Interest: Prime rate (Wall Street Journal) plus 2 percentage points. Retainage: 5 percent; nothing further withheld after 50 percent completion if progress is satisfactory. (HRS 103-10; HRS 103-10.5; HRS 103-32.1) | 2026-10-08 | statute | Record |
| Idaho | Owner to prime: 60 calendar days after billing unless a contract sets a longer period (state and taxing districts). Prime to sub: No public-works deadline located. Interest: Rate in Idaho Code 63-3045 (tax deficiency rate), compounded monthly. Retainage: 5 percent where the public body requires bonds above 50 percent of the contract. (Idaho Code 67-2302; Idaho Code 54-1926) | 2026-10-08 | statute | Record |
| Illinois | Owner to prime: State: 90 days after a proper bill (fiscal 2012 onward); local: approve within 30 days, then pay within 30 days of approval. Prime to sub: State: 10 business days or 15 calendar days, whichever is earlier; local: 15 days. Interest: 1 percent per month (state and local); 2 percent per month owed by a late prime to subs on local jobs. Retainage: Local governments: 10 percent until 50 percent completion, then cut to 5 percent (since 2024-01-01); the same limits reach state agencies on 2027-06-01 (P.A. 104-0168). (30 ILCS 540; 50 ILCS 505; 30 ILCS 550/1; HB1224 bill status) | 2024-01-01 | statute | Record |
| Indiana | Owner to prime: 35 days after receipt of a properly completed claim or of the goods and services when the contract sets no date (state and political subdivisions). Prime to sub: No general public-works deadline located in IC 5-17-5. Interest: 1 percent per month, compounded every 30 days. Retainage: Local boards: either up to 6 percent until 50 percent completion and nothing after, or up to 3 percent until substantial completion (contracts over $200,000). (Indiana Code 5-17-5-1; Indiana Code 36-1-12-14; Bill to reduce dollars withheld from construction contractors) | 2026-10-08 | statute (FindLaw copy) | Record |
| Iowa | Owner to prime: Interest runs on an approved progress payment unpaid 14 days after receipt of the request (the contract may allow up to 30 days). Prime to sub: 7 days after the prime is paid for that subcontractor's work. Interest: Rate set for public-fund deposits under Iowa Code 12C.6 (prime plus 1 percent for Board of Regents institutions). Retainage: 3 percent of each monthly payment (paragraphs amended by 2025 Acts, ch 29). (Iowa Code 573.12; Iowa Code 573.14) | 2026-10-08 | statute | Record |
| Kansas | Owner to prime: 30 days after a properly completed, undisputed request (45 days in extenuating circumstances). Prime to sub: 7 business days after the prime is paid (about 10 calendar days). Interest: 18 percent a year. Retainage: 5 percent, or up to 10 percent if the owner finds more is needed to secure performance. (K.S.A. 16-1903; K.S.A. 16-1904; K.S.A. 16-1902) | 2026-10-08 | statute | Record |
| Kentucky | Owner to prime: 30 business days after a properly completed, undisputed request (about 42 calendar days); 45 business days for universities and school boards. Prime to sub: 15 business days after the prime is paid (about 21 calendar days). Interest: 12 percent a year. Retainage: 10 percent until 50 percent completion, then no more than 5 percent of the contract amount. (KRS 371.405; KRS 371.410; KRS 371.400; KRS 45.453) | 2025-06-27 | statute | Record |
| Louisiana | Owner to prime: 45 days after a certified request for a progressive stage payment. Prime to sub: 7 days after the prime is paid (R.S. 9:2784 as rewritten by Act 822 of 2026, HB 638, which leaves public owner duties to 38:2191). Interest: One-half percent accumulated daily, capped at 15 percent, plus attorney fees. Retainage: 5 percent on projects of $500,000 or more (10 percent below $500,000), held until 45 days after recorded acceptance. (La. R.S. 38:2191; La. R.S. 38:2248; La. R.S. 9:2784; HB 638) | 2024-05-23 | statute | Record |
| Maine | Owner to prime: 20 days after the end of the billing period or delivery of the invoice, whichever is later, unless otherwise agreed (Prompt Payment Act covers the State and municipalities). Prime to sub: 7 days after the prime is paid or the sub invoices, whichever is later. Interest: Post-judgment rate under 14 M.R.S. 1602-C. Retainage: The State withholds 5 percent until acceptance; it may reduce the amount at substantial completion. (10 M.R.S. 1113; 10 M.R.S. 1111; 10 M.R.S. 1114; 5 M.R.S. 1746) | 2026-10-08 | statute | Record |
| Maryland | Owner to prime: State policy: 30 days after payment is due and a proper invoice is received (15 days on small business reserve contracts). Prime to sub: 10 days after the prime receives a State payment. Interest: 9 percent a year, accruing from day 31. Retainage: 5 percent of the contract where the contractor posts 100 percent payment and performance security; released within 120 days after completion. (Md. State Finance and Procurement 15-103; Md. State Finance and Procurement 15-104; Md. State Finance and Procurement 15-226; Md. State Finance and Procurement 17-110) | 2026-10-08 | statute | Record |
| Massachusetts | Owner to prime: Public buildings: 30 days after a periodic estimate for the Commonwealth (15 days for counties, cities, towns and other bodies). Prime to sub: Forthwith after the prime is paid, with a direct-payment demand route through the awarding authority. Interest: Fed Boston rediscount rate plus 3 percentage points, daily. Retainage: Not more than 5 percent of each approved periodic payment; all but 1 percent released at substantial completion (39G). (M.G.L. c. 30, s. 39K; M.G.L. c. 30, s. 39F) | 2026-10-08 | statute | Record |
| Michigan | Owner to prime: 30 days after the architect or engineer certifies the work in place (or 15 days after state or federal funds arrive, if later). Prime to sub: No public-works deadline located. Interest: Act 524 allows 'reasonable interest'; state executive departments add 0.75 percent a month on past-due bills (MCL 17.54). Retainage: 10 percent until the work is 50 percent in place; no additional retainage after that unless progress is unsatisfactory. (MCL 125.1562; MCL 125.1563; MCL 17.54) | 2026-10-08 | statute | Record |
| Minnesota | Owner to prime: State agencies: 30 days after the invoice (municipalities: 35 or 45 days). Prime to sub: 10 days after the prime is paid (municipal contracts). Interest: 1.5 percent per month. Retainage: Not more than 5 percent of each progress payment; may be reduced or eliminated; all released within 60 days after substantial completion. (Minn. Stat. 16A.124; Minn. Stat. 471.425; Minn. Stat. 15.72) | 2026-10-08 | statute | Record |
| Mississippi | Owner to prime: Due under the contract terms; interest runs if unpaid 45 calendar days after the due date. Prime to sub: 15 days after the prime is paid (penalty one-half percent a day, capped at 15 percent). Interest: 1 percent per month. Retainage: 5 percent; on contracts of $250,000 or more, half is returned at 50 percent completion and later retainage drops to 2.5 percent. (Miss. Code 31-5-25; Miss. Code 31-5-27; Miss. Code 31-5-33) | 2026-10-08 | statute (FindLaw copy) | Record |
| Missouri | Owner to prime: 30 days after the later of delivery, invoice or the contractor's approval of the owner's estimate. Prime to sub: 15 days after the prime is paid. Interest: 1.5 percent per month. Retainage: 5 percent of the contract or subcontract (10 percent on unbonded jobs under $50,000); the owner may reduce or eliminate it. (RSMo 8.960) | 2022-08-28 | statute | Record |
| Montana | Owner to prime: State agencies: 30 days after a properly completed invoice when the contract sets no date. Prime to sub: No deadline located for state contracts; local and private jobs fall under the construction payment act (28-2-2103). Interest: 0.05 percent a day, simple (about 18.25 percent a year). Retainage: Not more than 5 percent while the contractor performs; subs may not be held at a higher rate. (MCA 17-8-242; MCA 18-2-316; MCA 28-2-2103) | 2026-10-08 | statute | Record |
| Nebraska | Owner to prime: State agencies: 45 calendar days after the later of receipt of the work or the bill (political subdivisions: 30 days under the Construction Prompt Pay Act). Prime to sub: 10 days after the prime is paid (Construction Prompt Pay Act; not State contracts). Interest: State: delinquent-tax rate (federal short-term rate plus 3 points, reset every other year). Retainage: Political subdivisions: up to 10 percent, then no more than 5 percent of later payments at 50 percent completion; no State-contract cap located. (Neb. Rev. Stat. 81-2403; Neb. Rev. Stat. 81-2404; Neb. Rev. Stat. 45-1202; Neb. Rev. Stat. 45-1203; Neb. Rev. Stat. 45-1204; Neb. Rev. Stat. 45-104.02) | 2026-10-08 | statute | Record |
| Nevada | Owner to prime: 30 days after the public body receives the progress bill. Prime to sub: 10 days after the prime is paid. Interest: Highest 90-day certificate of deposit rate quoted by three Nevada institutions (338.515(6) via 338.530). Retainage: 5 percent until 50 percent of the work is done; after that the public body may stop withholding if progress is satisfactory. (NRS chapter 338) | 2026-10-08 | statute | Record |
| New Hampshire | Owner to prime: No public prompt payment statute located; a 2016 practitioner review reported none. Prime to sub: None located. Interest: None located. Retainage: No statutory retainage cap located; RSA 447:16 requires 100 percent payment bonds on larger public jobs. (RSA 447:16; #47: Does New Hampshire Need a Prompt Pay Statute?) | 2026-10-08 | not verified: no statute located | Record |
| New Jersey | Owner to prime: 30 calendar days after the billing date; a bill is deemed approved 20 days after receipt (bodies that vote on payments may pay in the next cycle). Prime to sub: 10 calendar days after the prime is paid. Interest: Prime rate plus 1 percentage point. Retainage: Local contracting units: 2 percent of each partial payment, released within 45 days of acceptance. (N.J.S.A. 2A:30A-2; N.J.S.A. 40A:11-16.3) | 2026-10-08 | statute (FindLaw copy) | Record |
| New Mexico | Owner to prime: 21 days after an undisputed request (local bodies may use 45 days on grant-funded jobs with a printed notice). Prime to sub: 7 days after the prime is paid. Interest: 1.5 percent per month. Retainage: Retainage barred: owners, contractors and subs may not hold back amounts owed for work performed (DOT contracts excluded). (NMSA 57-28-5; NMSA 57-28-2) | 2026-10-08 | statute (FindLaw copy) | Record |
| New York | Owner to prime: State agencies: 30 calendar days after the invoice, excluding legal holidays (15 for qualifying small businesses); municipalities other than New York City: 30 days (45 where an elected official must approve). Prime to sub: 7 calendar days after the prime is paid. Interest: Tax overpayment rate set by the Commissioner of Taxation and Finance (municipal contracts, 106-b). Retainage: Not more than 5 percent of each progress payment (up to 10 percent where full performance and payment bonds are not required). (N.Y. State Finance Law 179-f; N.Y. State Finance Law 139-f; N.Y. General Municipal Law 106-b) | 2026-10-08 | statute | Record |
| West Virginia | Owner to prime: Counties: 60 days after a legitimate uncontested invoice (no state-agency construction prompt pay section located; former 5A-3-54 is absent from the current article). Prime to sub: None located. Interest: Current rate set by the State Tax Commissioner (W. Va. Code 11-10-17a). Retainage: No statutory retainage cap located. (W. Va. Code 7-5-7; W. Va. Code chapter 5A, article 3) | 2026-10-08 | statute | Record |
| North Carolina | Owner to prime: Periodic payments follow the contract documents (no fixed day count); final payment within 45 days after acceptance, certification or occupancy. Prime to sub: 7 days after the prime is paid. Interest: 1 percent per month (unless a lower rate is agreed). Retainage: No retainage on projects under $150,000; otherwise 5 percent, and none after 50 percent completion with surety consent if work is satisfactory. (N.C. Gen. Stat. 143-134.1) | 2026-10-08 | statute | Record |
| North Dakota | Owner to prime: 45 days after the invoice when the contract sets no date (state agencies, political subdivisions, school districts). Prime to sub: 45 days after the prime is paid. Interest: 1.75 percent per month unless the contract sets another rate. Retainage: 10 percent of each estimate until 50 percent completion, then no further retainage unless progress is documented as unsatisfactory. (N.D.C.C. chapter 13-01.1; N.D.C.C. chapter 48-01.2) | 2026-10-08 | statute | Record |
| Ohio | Owner to prime: State agencies: 30 days after a proper invoice when the contract sets no date. Prime to sub: 10 calendar days after the prime is paid (18 percent a year if late). Interest: One-twelfth of the annual rate set under R.C. 5703.47 (tax-linked), per month. Retainage: Labor estimates paid at no less than 96 percent (up to 4 percent held); stored materials paid at 92 percent of invoice cost. (Ohio Rev. Code 126.30; Ohio Rev. Code 153.12; Ohio Rev. Code 153.14; Ohio Rev. Code 4113.61; Bulletin 2026-05: Senate Bill 262, construction contracts must note variation from standard form) | 2026-09-17 | statute | Record |
| Oklahoma | Owner to prime: 30 calendar days after a proper invoice on contracts over $25,000 (Fair Pay for Construction Act). Prime to sub: 10 calendar days after the prime is paid. Interest: State invoices: average rate on 30-day state time deposits (62 O.S. 34.72); late final payments 1.5 percent a month (61 O.S. 113.3). Retainage: Up to 5 percent; cut to 2.5 percent of the amount earned once more than 50 percent is complete and progress is satisfactory; none on ODOT and Turnpike contracts. (61 O.S. 223; 61 O.S. 224; 61 O.S. 226; 61 O.S. 113.1; 61 O.S. 222; 62 O.S. 34.72) | 2022-11-01 | statute | Record |
| Oregon | Owner to prime: Monthly progress payments; interest starts 30 days after the invoice or 15 days after approval, whichever is earlier. Prime to sub: 10 days after the agency pays the prime. Interest: Three times the Federal Reserve discount rate on 90-day commercial paper, capped at 30 percent. Retainage: Up to 5 percent of each progress payment; the agency may eliminate it after 50 percent completion on the contractor's written application with surety approval. (ORS chapter 279C) | 2026-10-08 | statute | Record |
| Pennsylvania | Owner to prime: 45 calendar days after the application for payment when the contract sets no time. Prime to sub: 14 days after the prime is paid. Interest: Rate set by the Secretary of Revenue for overdue taxes. Retainage: 10 percent until 50 percent completion; then half is returned and no more than 5 percent of completed work is held. (62 Pa.C.S. 3932; 62 Pa.C.S. 3933; 62 Pa.C.S. 3921) | 2026-10-08 | statute (FindLaw copy) | Record |
| Rhode Island | Owner to prime: State: 30 calendar days after a proper invoice or the contract's periodic payment date. Prime to sub: 7 days after the state pays. Interest: Wall Street Journal prime rate, compounded monthly. Retainage: Up to 5 percent of the contract price on public works contracts under $500,000; no cap located for larger contracts. (R.I. Gen. Laws 42-11.1-3; R.I. Gen. Laws 42-11.1-6; R.I. Gen. Laws 37-12-10) | 2026-10-08 | statute | Record |
| South Carolina | Owner to prime: 21 days after a pay request (the prompt pay chapter covers state, local and municipal owners). Prime to sub: 7 days after the prime is paid. Interest: 1 percent per month, once the payer has been told of the statute. Retainage: No more than 3.5 percent of each progress payment, for the State and its general contractors. (S.C. Code chapter 29-6; S.C. Code 11-35-3030) | 2026-10-08 | statute | Record |
| South Dakota | Owner to prime: 45 days after written acceptance and the invoice when the contract sets no date (state, counties, cities, school districts). Prime to sub: 30 days after the prime is paid. Interest: Category B statutory rate, 10 percent a year. Retainage: No percentage cap located; an amount needed to finish the work is held from final payment and earns interest. (SDCL chapter 5-26; SDCL 54-3-16; SDCL chapter 5-18B) | 2026-10-08 | statute | Record |
| Tennessee | Owner to prime: State agencies: 45 days after the invoice when the contract sets no date. Prime to sub: 30 days after the prime is paid. Interest: 1.5 percent per month. Retainage: Up to 5 percent of the contract on public and private jobs; released within 90 days after completion or substantial completion. (Tenn. Code 12-4-703; Tenn. Code 12-4-704; Tenn. Code 12-4-707; Tenn. Code 66-34-103) | 2026-10-08 | statute (FindLaw copy) | Record |
| Texas | Owner to prime: Overdue on the 31st day after the later of receipt of the work or the invoice (46th day for bodies that meet monthly or less). Prime to sub: 10 days after the vendor is paid. Interest: Wall Street Journal prime rate plus 1 percentage point, set each September 1. Retainage: 10 percent on contracts under $5 million (and dam work); 5 percent on contracts of $5 million or more. (Tex. Gov't Code chapter 2251; Tex. Gov't Code 2252.032) | 2026-10-08 | statute | Record |
| Utah | Owner to prime: State agencies: 60 days after the invoice when the contract sets no date. Prime to sub: 30 days after the state pays. Interest: IRS refund-claim rate plus 2 percentage points, reset quarterly. Retainage: No more than 5 percent of any payment, for owners, public agencies and contractors alike (13-8-5; a new version takes effect 2027-01-01). (Utah Code 15-6-2; Utah Code 15-6-3; Utah Code 15-6-5; Utah Code 13-8-5) | 2026-10-08 | statute | Record |
| Vermont | Owner to prime: 20 days after the end of the billing period or delivery of the invoice, whichever is later, unless otherwise agreed (covers the State and municipalities). Prime to sub: 7 days after the prime is paid or receives the sub's invoice, whichever is later. Interest: Rate set in 12 V.S.A. 2903(b). Retainage: No percentage cap located; retainage must be released within 30 days after final acceptance. (9 V.S.A. chapter 102) | 2026-10-08 | statute | Record |
| Virginia | Owner to prime: State agencies: 30 days after a proper invoice or receipt of the work, whichever is later (localities: 45 days). Prime to sub: 7 days after the prime is paid (pay or give notice of withholding); the prime must also pay within 60 days of the sub's invoice even if the owner has not paid. Interest: Wall Street Journal prime rate (state agencies), capped by the rate in Va. Code 58.1-1812. Retainage: No more than 5 percent of each progress payment, for primes and subs. (Va. Code 2.2-4347; Va. Code 2.2-4354; Va. Code 2.2-4355; Va. Code 2.2-4333) | 2026-10-08 | statute | Record |
| Washington | Owner to prime: 30 days after a properly completed invoice or receipt of the work, whichever is later (state and local). Prime to sub: 10 days after the prime is paid. Interest: 1 percent per month. Retainage: Public bodies must reserve retainage of up to 5 percent of earnings as a trust fund (federal transportation jobs rely on the bond instead). (RCW 39.76.011; RCW 60.28.011; RCW 39.04.250) | 2026-10-08 | statute | Record |
| Wisconsin | Owner to prime: State agencies: 30 days after a properly completed invoice or acceptance of the work, whichever is later (local units: interest from day 31). Prime to sub: 7 days after the prime is paid (state contracts). Interest: Rate in Wis. Stat. 71.82(1)(a): 12 percent a year, compounded monthly. Retainage: Municipalities: up to 5 percent until 50 percent completion, then nothing more unless the architect or engineer certifies poor progress (cap 10 percent). (Wis. Stat. 16.528; Wis. Stat. 66.0135; Wis. Stat. 66.0901(9); Wis. Stat. 71.82(1)(a)) | 2026-10-08 | statute | Record |
| Wyoming | Owner to prime: 45 days after a correct notice of the amount due, unless the contract provides otherwise (state and political subdivisions). Prime to sub: No public-works deadline located. Interest: 1.5 percent per month. Retainage: No more than 5 percent of the value of work completed; may be paid early on request with surety approval. (Wyo. Stat. Title 16) | 2026-10-08 | statute | Record |
Prompt payment act construction by state: how fast public owners must pay
Most states give a public owner about a month. Of 49 jurisdictions with a fixed day count, 23 use exactly 30 days and the median is 30 days; federal agencies must pay construction progress payments within 14 days.
Statutory owner-to-prime deadline, 50 verified jurisdictions, calendar days
Source: CB&C analysis of state public prompt payment statutes, checked 2026-10-08
| Owner payment deadline | Jurisdictions | Share of verified | Which |
|---|---|---|---|
| 20 days or less | 4 | 8.0% | Georgia, Iowa, Maine, Vermont |
| 21 to 30 days | 27 | 54.0% | Alaska, Arizona, Arkansas, California, Delaware, District of Columbia, Hawaii, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Texas, Virginia, Washington, Wisconsin |
| 31 to 45 days | 14 | 28.0% | Alabama, Colorado, Connecticut, Florida, Indiana, Kentucky, Louisiana, Mississippi, Nebraska, North Dakota, Pennsylvania, South Dakota, Tennessee, Wyoming |
| 46 to 60 days | 3 | 6.0% | Idaho, Utah, West Virginia |
| Over 60 days | 1 | 2.0% | Illinois |
| No fixed day count | 1 | 2.0% | North Carolina |
| Not verified | 1 | excluded | New Hampshire |
Calendar days. Arkansas (15 working days) and Kentucky (30 business days) converted at 7/5. Florida uses the state-agency warrant deadline; triggers differ (receipt, approval, certification).
Source: [10][52][45][57][22][106] Alabama Legislature (ALISON); Iowa Legislature; Illinois General Assembly; Kentucky General Assembly; FindLaw (Thomson Reuters) copy of the Arkansas Code; North Carolina General Assembly
4 jurisdictions set 20 days or less: Iowa (14 days before interest runs), Georgia (15 days under its Prompt Pay Act, which covers government owners), and Maine and Vermont (20 days after the billing period or invoice, under acts that name the State and municipalities as owners).
14 jurisdictions fall between 31 and 45 days, including Colorado, Connecticut, Louisiana, Mississippi, Pennsylvania and Tennessee. Idaho, Utah and West Virginia counties allow 60 days, and Illinois state agencies 90 days after a proper bill (30 ILCS 540/3-2). Illinois local governments must approve a bill within 30 days and pay within 30 days of approval (50 ILCS 505).
Owner-to-prime deadline: The number of days a public owner has to pay an approved or undisputed progress payment before the statute treats it as late, usually counted from receipt of the pay request or invoice, or from approval or certification.
Triggers differ, so equal day counts are not always equal in practice. Arizona counts 14 days from certification, but an estimate is deemed certified 7 days after submission. Michigan counts 30 days from the architect's or engineer's certification. Arkansas sets 5 working days each for the design professional, the agency and the Department of Finance and Administration on state projects. Many statutes apply only when the contract sets no other date.
Do subcontractors get prompt payment on public jobs?
Yes in 41 jurisdictions. The median deadline is 10 days after the prime is paid, and 16 jurisdictions copy the federal 7-day rule.
Days after the prime contractor is paid
Source: CB&C reading of state public works prompt payment statutes, checked 2026-10-08
| Prime-to-sub deadline after payment | Jurisdictions | Share of verified | Which |
|---|---|---|---|
| 7 days | 16 | 32.0% | Alabama, Arizona, California, Colorado, District of Columbia, Iowa, Louisiana, Maine, New Mexico, New York, North Carolina, Rhode Island, South Carolina, Vermont, Virginia, Wisconsin |
| 8 to 10 days | 14 | 28.0% | Florida, Georgia, Hawaii, Kansas, Maryland, Minnesota, Nebraska, Nevada, New Jersey, Ohio, Oklahoma, Oregon, Texas, Washington |
| 11 to 15 days | 6 | 12.0% | Alaska, Connecticut, Illinois, Mississippi, Missouri, Pennsylvania |
| 16 to 30 days | 4 | 8.0% | Kentucky, South Dakota, Tennessee, Utah |
| Over 30 days | 1 | 2.0% | North Dakota |
| No fixed deadline located | 9 | 18.0% | Arkansas, Delaware, Idaho, Indiana, Massachusetts, Michigan, Montana, West Virginia, Wyoming |
Calendar days after the prime is paid. Alaska (8 working days), Kansas (7 business days) and Kentucky (15 business days) converted at 7/5.
Source: [18][136][106][107][129][134][140] California Legislative Information; Texas Legislature (Texas Constitution and Statutes); North Carolina General Assembly; North Dakota Legislative Branch; South Dakota Legislature; FindLaw (Thomson Reuters) copy of the Tennessee Code; Utah State Legislature
The 7-day group includes Alabama, Arizona, California, Colorado, New York, North Carolina, South Carolina and Virginia. 14 jurisdictions use 8 to 10 days, including Florida, Maryland, Minnesota, Texas and Washington. North Dakota allows 45 days, and South Dakota, Tennessee and Utah 30 days.
Virginia goes further than a flow-down clock: since 2023 (cc. 675 and 676) a prime on a state or local contract must pay a subcontractor within 60 days of the subcontractor's invoice for completed work even if the owner has not paid, and payment by the owner cannot be a condition precedent (Va. Code 2.2-4354).
9 jurisdictions set no prime-to-sub day count in the public statutes reviewed, including Arkansas, Delaware, Idaho, Indiana, Michigan and Wyoming. Massachusetts requires payment 'forthwith' after the prime is paid and gives subcontractors a direct-payment demand route (M.G.L. c. 30, s. 39F). Private-work rules for the same parties are covered in our mechanics lien laws by state registry and are not repeated here.
Interest on late public payments: fixed, index-linked and federal rates
27 jurisdictions write a fixed rate into the statute, most often 1 or 1.5 percent a month; 21 tie it to a market or tax rate that changes over time.
Type of late-payment rate in 50 verified jurisdictions
Source: CB&C classification of state public prompt payment statutes, checked 2026-10-08
| Rate type | Jurisdictions | Share of verified | Which |
|---|---|---|---|
| Fixed statutory rate | 27 | 54.0% | Alaska, Arizona, Arkansas, California, Colorado, Delaware, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, New Mexico, North Carolina, North Dakota, South Carolina, South Dakota, Tennessee, Washington, Wisconsin, Wyoming |
| Index-linked rate (prime, Treasury, Federal Reserve, tax or deposit rate) | 21 | 42.0% | Alabama, Connecticut, Florida, Hawaii, Idaho, Iowa, Maine, Massachusetts, Nebraska, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Virginia, West Virginia |
| Rate set by regulation or another code section | 2 | 4.0% | District of Columbia, Vermont |
Fixed rates run from 8% a year (Arkansas) to 1.75% a month (North Dakota). Index rates move with prime, Treasury, Federal Reserve, tax or state deposit rates.
Source: [22][107][40][136][97][121][7] FindLaw (Thomson Reuters) copy of the Arkansas Code; North Dakota Legislative Branch; Hawaii State Legislature; Texas Legislature (Texas Constitution and Statutes); FindLaw (Thomson Reuters) copy of the New Jersey Statutes; FindLaw (Thomson Reuters) copy of the Pennsylvania Consolidated Statutes; U.S. Department of the Treasury, Bureau of the Fiscal Service
Annualised, the fixed rates run from 8% (Arkansas, a penalty on delayed processing) to 21% (North Dakota, 1.75% a month). 12 fixed-rate jurisdictions charge 12% a year or 1% a month, and 8 charge 18% a year or more, including Kansas (18% a year) and Minnesota, Missouri, New Mexico, Tennessee and Wyoming (1.5% a month). Louisiana charges one-half percent accumulated daily, capped at 15 percent.
Index-linked states use several benchmarks: prime plus 1 point in New Jersey and Texas, prime plus 2 points in Hawaii, the Wall Street Journal prime rate in Rhode Island and Virginia, three times the Federal Reserve 90-day commercial paper discount rate in Oregon (capped at 30 percent), and tax-linked rates in Alabama, Idaho, New York, Ohio and Pennsylvania. Connecticut uses the monthly yield of its Short Term Investment Fund.
Federal agencies pay interest at the Treasury rate, 4.75% for July 1 to December 31, 2026 and 4.125% for January to June 2026. The median fixed state rate is about 2.5 times that figure, so a late state owner in a fixed-rate state usually owes more than a late federal agency.
Maximum retainage on public projects by state
Five percent is the norm: 30 of 46 jurisdictions with a percentage limit set exactly 5%, and 35 set 5% or less. 9 start at 10%, and New Mexico bars retainage.
Percent of each payment or of the contract; checked 2026-10-08; blank = no cap located or not verified
Source: CB&C reading of state public works statutes on official legislature sites (FindLaw copies for AR, CO, GA, IN, MS, NJ, NM, PA, TN), checked 2026-10-08
| Retainage cap | Jurisdictions | Share of verified | Which |
|---|---|---|---|
| Retainage barred (0%) | 1 | 2.0% | New Mexico |
| Under 5% | 4 | 8.0% | Iowa, New Jersey, Ohio, South Carolina |
| 5% | 30 | 60.0% | Alabama, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nevada, New York, North Carolina, Oklahoma, Oregon, Rhode Island, Tennessee, Utah, Virginia, Washington, Wisconsin, Wyoming |
| Over 5% and under 10% | 2 | 4.0% | Connecticut, Indiana |
| 10% | 9 | 18.0% | Arizona, District of Columbia, Illinois, Kentucky, Michigan, Nebraska, North Dakota, Pennsylvania, Texas |
| No percentage cap located | 4 | 8.0% | Alaska, South Dakota, Vermont, West Virginia |
Cap that applies to a $1 million state or local building contract with normal performance. Texas allows 10% under $5 million and 5% at $5 million or more; Louisiana 5% at $500,000 or more.
Source: [99][98][52][128][110][15][50][26][137] FindLaw (Thomson Reuters) copy of the New Mexico Statutes; FindLaw (Thomson Reuters) copy of the New Jersey Statutes; Iowa Legislature; South Carolina Legislature; Ohio Legislative Service Commission (codes.ohio.gov); California Legislative Information; FindLaw (Thomson Reuters) copy of the Indiana Code; Connecticut General Assembly; Texas Legislature (Texas Constitution and Statutes)
Below 5%, New Jersey local units withhold 2% of each partial payment (N.J.S.A. 40A:11-16.3), Iowa 3% under the 2026 Code, South Carolina 3.5% (S.C. Code 11-35-3030), and Ohio pays labor estimates at no less than 96 percent. Connecticut state agencies may hold 7.5%, cut to 5% at 50 percent completion, and Indiana local boards up to 6% until the halfway mark.
Size thresholds matter. Texas allows 10% on contracts under $5 million and 5% at $5 million or more (Gov't Code 2252.032). Louisiana allows 10% under $500,000 and 5% at $500,000 or more (R.S. 38:2248). North Carolina bars retainage on projects under $150,000. Rhode Island's 5% cap is written for contracts under $500,000.
No percentage cap was located for Alaska, South Dakota, Vermont or West Virginia. Alaska instead makes the owner pay interest on retainage, South Dakota holds an amount needed to finish the work from final payment, and Vermont requires release within 30 days after final acceptance.
Can retainage be reduced? The 50 percent completion rule
Yes, in 19 jurisdictions. 14 require the cut once progress is satisfactory, and 5 let the owner decide.
50 verified jurisdictions
Source: CB&C reading of state public works retainage statutes, checked 2026-10-08
| Jurisdiction | 50% rule | Rule | Statutes |
|---|---|---|---|
| Alabama | Required | Not more than 5 percent; no further retainage after 50 percent completion; none on ALDOT highway contracts | Code of Alabama 39-2-12; Code of Alabama 41-16-3 |
| Arizona | Required | 10 percent; at 50 percent completion half is released and no more than 5 percent of later payments may be held | A.R.S. 34-221 |
| Connecticut | Required | State agencies 7.5 percent, cut to 5 percent at 50 percent completion; DOT 2.5 percent; municipalities 5 percent (49-41b) | Conn. Gen. Stat. 4a-71; Conn. Gen. Stat. 49-41a and 49-41b; Conn. Gen. Stat. 49-41c, 2026 Supplement |
| Hawaii | Required | 5 percent; nothing further withheld after 50 percent completion if progress is satisfactory | HRS 103-10; HRS 103-10.5; HRS 103-32.1 |
| Illinois | Required | Local governments: 10 percent until 50 percent completion, then cut to 5 percent (since 2024-01-01); the same limits reach state agencies on 2027-06-01 (P.A. 104-0168) | 30 ILCS 540; 50 ILCS 505; 30 ILCS 550/1; HB1224 bill status |
| Kentucky | Required | 10 percent until 50 percent completion, then no more than 5 percent of the contract amount | KRS 371.405; KRS 371.410; KRS 371.400; KRS 45.453 |
| Michigan | Required | 10 percent until the work is 50 percent in place; no additional retainage after that unless progress is unsatisfactory | MCL 125.1562; MCL 125.1563; MCL 17.54 |
| Mississippi | Required | 5 percent; on contracts of $250,000 or more, half is returned at 50 percent completion and later retainage drops to 2.5 percent | Miss. Code 31-5-25; Miss. Code 31-5-27; Miss. Code 31-5-33 |
| Nebraska | Required | Political subdivisions: up to 10 percent, then no more than 5 percent of later payments at 50 percent completion; no State-contract cap located | Neb. Rev. Stat. 81-2403; Neb. Rev. Stat. 81-2404; Neb. Rev. Stat. 45-1202; Neb. Rev. Stat. 45-1203; Neb. Rev. Stat. 45-1204; Neb. Rev. Stat. 45-104.02 |
| North Carolina | Required | No retainage on projects under $150,000; otherwise 5 percent, and none after 50 percent completion with surety consent if work is satisfactory | N.C. Gen. Stat. 143-134.1 |
| North Dakota | Required | 10 percent of each estimate until 50 percent completion, then no further retainage unless progress is documented as unsatisfactory | N.D.C.C. chapter 13-01.1; N.D.C.C. chapter 48-01.2 |
| Oklahoma | Required | Up to 5 percent; cut to 2.5 percent of the amount earned once more than 50 percent is complete and progress is satisfactory; none on ODOT and Turnpike contracts | 61 O.S. 223; 61 O.S. 224; 61 O.S. 226; 61 O.S. 113.1; 61 O.S. 222; 62 O.S. 34.72 |
| Pennsylvania | Required | 10 percent until 50 percent completion; then half is returned and no more than 5 percent of completed work is held | 62 Pa.C.S. 3932; 62 Pa.C.S. 3933; 62 Pa.C.S. 3921 |
| Wisconsin | Required | Municipalities: up to 5 percent until 50 percent completion, then nothing more unless the architect or engineer certifies poor progress (cap 10 percent) | Wis. Stat. 16.528; Wis. Stat. 66.0135; Wis. Stat. 66.0901(9); Wis. Stat. 71.82(1)(a) |
| Arkansas | Allowed | 5 percent on bonded contracts; the agency may stop withholding at 50 percent completion with satisfactory work | Ark. Code 22-9-604; Ark. Code 19-4-1411 |
| District of Columbia | Allowed | 10 percent until completion; after 50 percent completion the Mayor may stop or reduce it | D.C. Code 2-221.02; D.C. Code 2-203.01 |
| Indiana | Allowed | Local boards: either up to 6 percent until 50 percent completion and nothing after, or up to 3 percent until substantial completion (contracts over $200,000) | Indiana Code 5-17-5-1; Indiana Code 36-1-12-14; Bill to reduce dollars withheld from construction contractors |
| Nevada | Allowed | 5 percent until 50 percent of the work is done; after that the public body may stop withholding if progress is satisfactory | NRS chapter 338 |
| Oregon | Allowed | Up to 5 percent of each progress payment; the agency may eliminate it after 50 percent completion on the contractor's written application with surety approval | ORS chapter 279C |
'Required' means the statute directs the cut once progress is satisfactory; 'Allowed' means the owner may cut it.
Source: [10][14][26][42][47][58][76][83][106][108][116][123][152][94][120] Alabama Legislature (ALISON); Arizona State Legislature; Connecticut General Assembly; Hawaii State Legislature; Illinois General Assembly; Kentucky General Assembly; Michigan Legislature; FindLaw (Thomson Reuters) copy of the Mississippi Code; North Carolina General Assembly; North Dakota Legislative Branch; Oklahoma State Courts Network (OSCN); FindLaw (Thomson Reuters) copy of the Pennsylvania Consolidated Statutes; Wisconsin State Legislature; Nevada Legislature; Oregon State Legislature
The reductions take three forms. Some stop withholding entirely after 50 percent (Alabama, Hawaii, Michigan, North Carolina, North Dakota, Wisconsin). Some halve the rate (Illinois local governments, Kentucky and Nebraska political subdivisions from 10% to 5%; Oklahoma from 5% to 2.5%; Mississippi to 2.5% with half the held amount returned). Arizona and Pennsylvania return half of what was held and cap later withholding at 5%.
Other states allow reduction without tying it to 50 percent: Minnesota and Missouri let the owner reduce or eliminate retainage when work is satisfactory, and Oregon allows elimination after 50 percent only on the contractor's written application with surety approval. Projects run under construction management at risk or design-build often have their own retainage terms in the contract.
Federal Prompt Payment Act and Miller Act benchmark
Federal law is the fastest payer on paper: 14 days for progress payments, 7 days for subcontractors, and retainage only when progress is unsatisfactory.
| Measure | Federal rule | State statutes | Note |
|---|---|---|---|
| Owner-to-prime progress payment deadline | 14 days (31 U.S.C. 3903; FAR 52.232-27) | Median 30 days (n = 49) | 1 jurisdiction at or under 14 days: Iowa |
| Prime-to-subcontractor deadline | 7 days (31 U.S.C. 3905) | Median 10 days (n = 41) | 16 jurisdictions at 7 days or less |
| Interest on late payment | 4.75% a year, July to December 2026 (Treasury) | Median fixed rate 12% a year (n = 26) | 21 jurisdictions tie the rate to an index |
| Retainage | Up to 10%, only when progress is unsatisfactory (FAR 32.103) | Median cap 5% (n = 46) | 30 jurisdictions cap at 5%; 19 cut or allow a cut at 50% completion |
Federal rules from 31 U.S.C. 3903 and 3905, FAR 52.232-27 and FAR 32.103; Treasury rate for July 1 to December 31, 2026.
Source: [1][2][4][5][7] Legal Information Institute, Cornell Law School (copy of the U.S. Code); Legal Information Institute, Cornell Law School (copy of the U.S. Code); U.S. General Services Administration, Acquisition.gov; U.S. General Services Administration, Acquisition.gov; U.S. Department of the Treasury, Bureau of the Fiscal Service
31 U.S.C. 3903 requires interest on a construction progress payment unpaid more than 14 days after the payment request is received, and FAR 52.232-27 sets the due date at 14 days after the designated billing office receives a proper request. Under 31 U.S.C. 3905 every federal construction subcontract must require payment within 7 days of the prime being paid, with interest at the Treasury rate for late payments.
FAR 32.103 limits retainage to 10 percent of the approved estimate and says it should not be used as a substitute for good contract management. The Miller Act (40 U.S.C. 3131) requires performance and payment bonds on federal construction contracts of more than $100,000 in the statute text; FAR 28.102-1 applies the requirement to contracts exceeding $150,000. Federal spending patterns by state are in our federal construction contracts by state report.
How to read the state registry
Each row gives the default rule in the statute, the scope it covers and a link to the text we read on 2026-10-08.
Several states use one statute for public and private work: Georgia, Kentucky, Maine, New Jersey, New Mexico, South Carolina and Vermont for payment timing, and Tennessee and Utah for retainage. Their private-side rules are summarised in the mechanics lien laws by state registry; this page reports only how they apply to public owners.
Where a state has separate rules for state agencies and local governments, the registry reports the state-agency rule and notes the local one. Florida, for example, gives local governments 20 or 25 business days (Fla. Stat. 218.735) while state agencies have 40 days before interest runs (Fla. Stat. 215.422).
Payment terms are also a bidding issue: a contractor pricing public work can compare the deadline, interest and retainage rules here before submitting a number. Our guide on how to win commercial construction bids covers the bid side.
Counts and distributions
Distribution of public owner payment deadlines
FormulaCount of jurisdictions per deadline bucket; median of owner_days
Inputs: Fact sheet owner rows for 50 verified jurisdictions; derived d3, d12, d15 (fact sheet rows)
Result: Median 30 days (n = 49); 23 at exactly 30 days; 31 at 30 days or less; range 14 to 90 days.
Thirty days is the default for most public owners, about twice the federal 14-day rule.
Limitations: Triggers differ (receipt, approval, certification); business and working days converted at 7/5 for Arkansas and Kentucky; Florida uses the state-agency warrant deadline.
Distribution of public retainage caps
FormulaCount of jurisdictions per cap bucket; median of ret_cap
Inputs: Fact sheet retainage rows; derived d37, d36, d35 (fact sheet rows)
Result: 30 of 46 at exactly 5% (65.2%); 35 at 5% or less; 9 at 10%; median cap 5%.
Five percent is the national norm for public work; 10% caps survive mainly where a 50 percent reduction follows.
Limitations: Cap measured for a $1 million state or local building contract; size thresholds (Texas, Louisiana, North Carolina, Rhode Island) and agency exceptions apply.
Jurisdictions that reduce retainage at 50 percent completion
Formulacount(r50 = required) and count(r50 = allowed)
Inputs: Fact sheet r50 rows; derived d38, d39, d41 (fact sheet rows)
Result: 14 required, 5 allowed, 19 in total (38.0% of verified jurisdictions).
Where the starting cap is 10%, a 50 percent rule usually follows; most 5% states hold the same rate to completion.
Limitations: Satisfactory-progress and surety-consent conditions apply; Indiana's 50 percent stop is one of two options a local board may choose.
Interest rate types and the federal comparison
Formulacount by int_type; median(annual fixed rate); median / federal Treasury rate
Inputs: Fact sheet interest and annual rows, Treasury rate row 6; derived d48, d53 (fact sheet rows)
Result: 27 fixed, 21 index-linked, 2 set elsewhere; median fixed rate 12% a year, about 2.5 times the 4.75% federal rate.
Fixed state rates were set by statute and do not move with markets, so they stay well above the federal rate in 2026.
Limitations: Annualisation is monthly rate x 12 without compounding; Louisiana's daily rate is not annualised; some statutes require notice before interest is due.
Subcontractor flow-down compared with federal law
Formulamedian(sub_days); count(sub_days <= 7)
Inputs: Fact sheet sub rows; derived d20, d27 (fact sheet rows)
Result: Median 10 days (n = 41); 16 jurisdictions at 7 days or less.
About a third of jurisdictions mirror the federal 7-day rule; the rest give primes longer.
Limitations: Business and working days converted at 7/5 for Alaska, Kansas and Kentucky; some statutes let the parties agree other terms.
Key findings
- Across 49 jurisdictions with a fixed day count, the median public owner-to-prime deadline is 30 days (statutes checked 2026-10-08).[16][136][147]
- 23 jurisdictions set exactly 30 days, the most common deadline; 10 set 45 days.[97][143][81][132]
- Iowa's 14 days (Iowa Code 573.12) is the only state deadline that matches the federal 14-day progress payment rule.[52][1]
- Illinois state agencies have 90 days to pay a proper bill (30 ILCS 540/3-2), the longest default found; Idaho, Utah and West Virginia counties allow 60 days.[45][43][138][104]
- North Carolina sets no day count for public progress payments; only final payment has a 45-day deadline (G.S. 143-134.1).[106]
- The median prime-to-subcontractor deadline on public work is 10 days across 41 jurisdictions; 16 require 7 days.[2][18][99][127]
- North Dakota allows primes the longest, 45 days, to pay subcontractors (N.D.C.C. 13-01.1-06); South Dakota, Tennessee and Utah allow 30 days.[107][129][134][140]
- 27 jurisdictions use a fixed late-payment rate; annualised, those rates run from 8% (Arkansas) to 21% (North Dakota, 1.75% a month), with a median of 12%.[22][107][78]
- The median fixed state rate of 12% a year is about 2.5 times the federal Prompt Payment Act rate of 4.75% for July to December 2026.[7][39][147]
- 21 jurisdictions tie late-payment interest to an index, such as prime plus 1 point (New Jersey, Texas) or prime plus 2 points (Hawaii).[97][136][40]
- 30 jurisdictions cap public retainage at 5%; 9 jurisdictions, including Arizona, Illinois (local), Kentucky, Michigan, North Dakota, Pennsylvania and Texas, start at 10%.[15][14][47][123]
- New Mexico bars retainage on public and private construction contracts (NMSA 57-28-5); New Jersey local units hold 2% and Iowa 3%.[99][98][52]
- 14 jurisdictions require retainage to be cut or stopped at 50 percent completion when progress is satisfactory, and 5 allow it.[10][42][106][94][120]
- Federal construction retainage is capped at 10% and may be held only when progress is unsatisfactory (FAR 32.103).[5][6]
Executive summary
- The median statutory deadline for a state or local owner to pay a prime contractor on public construction is 30 days across 49 jurisdictions that set a day count (checked 2026-10-08).
- 23 of those 49 jurisdictions use exactly 30 days, and 31 (63.3%) require payment within 30 days or less; Illinois state agencies have the longest default at 90 days.
- Only Iowa matches the federal 14-day progress payment rule; the federal Prompt Payment Act (31 U.S.C. 3903) is faster than every other state statute reviewed.
- Prime contractors must pay subcontractors within a median 10 days of being paid; 16 jurisdictions require 7 days, the same as federal law.
- 27 jurisdictions charge a fixed statutory interest rate on late public payments (median 12% a year when annualised), and 21 tie the rate to prime, Treasury, Federal Reserve, tax or deposit rates.
- 30 of the 46 jurisdictions with a percentage limit cap public retainage at 5%; New Mexico bars it, and 9 allow up to 10%.
- 19 jurisdictions cut or allow cutting retainage at 50 percent completion; in 14 of them the reduction is required once progress is satisfactory.
- New Hampshire is the one jurisdiction where no public prompt payment statute was located; it is excluded from all counts.
Questions people ask
How long does the government have to pay a contractor?
A federal agency must pay a construction progress payment within 14 days of receiving a proper request (FAR 52.232-27). State and local owners have longer: the median statutory deadline is 30 days across 49 jurisdictions, from 14 days in Iowa to 90 days for Illinois state agencies (checked 2026-10-08).
What is the maximum retainage on public projects?
Usually 5%. 30 of 46 jurisdictions with a percentage limit cap public retainage at 5%, 9 allow 10%, and New Mexico bars it. Federal contracting officers may hold up to 10%, and only when progress is unsatisfactory (FAR 32.103).
What is the federal prompt payment interest rate?
4.75% a year for July 1 to December 31, 2026, set by the Treasury and published in the Federal Register on 2026-07-09. The rate was 4.125% for January to June 2026.
Do subcontractors get prompt payment on public jobs?
Yes in 41 jurisdictions: the prime must pay within a set number of days after it is paid, a median 10 days, and 16 use 7 days like federal law. North Dakota allows 45 days, and no deadline was located in 9 jurisdictions.
Can retainage be reduced?
Yes. 19 jurisdictions cut or allow cutting retainage at 50 percent completion (14 require it once progress is satisfactory), and others such as Minnesota and Missouri let the owner reduce it whenever work is satisfactory. Many states also release retainage on completed portions or at substantial completion.
Frequently asked questions
Which state pays public contractors fastest?
Iowa: interest runs on an approved progress payment unpaid 14 days after the request is received (Iowa Code 573.12). Georgia allows 15 days and Maine and Vermont 20 days.
Which state gives public owners the longest to pay?
Illinois state agencies have 90 days after a proper bill before 1% monthly interest is added (30 ILCS 540/3-2). Idaho and Utah allow 60 days.
What is the most common public payment deadline?
30 days. 23 of the 49 jurisdictions with a fixed day count use exactly 30 days.
How much interest does a late state owner pay?
It depends on the state. 27 jurisdictions set a fixed rate, a median 12% a year when annualised; Kansas charges 18% a year and North Dakota 1.75% a month. 21 use an index such as prime plus 1 point (Texas, New Jersey).
Does the federal Prompt Payment Act apply to state projects?
No. The Prompt Payment Act (31 U.S.C. chapter 39) and FAR 52.232-27 govern federal agency contracts. State and local public works follow the state statutes in this registry.
What does the Miller Act require?
Performance and payment bonds before award of a federal construction contract; FAR 28.102-1 applies this to contracts exceeding $150,000, with payment protections required above $35,000.
Which states ban retainage on public work?
New Mexico: owners, contractors and subcontractors may not hold back amounts owed for work performed (NMSA 57-28-5), except on Department of Transportation contracts.
Is public retainage the same as private retainage?
Not always. Tennessee and Utah use one cap for both, but most states have separate public works rules. Private caps are listed in our mechanics lien laws by state registry.
Which state has no public prompt payment statute?
New Hampshire: no public prompt payment statute was located, and a 2016 practitioner review reported that every other state had one. It is excluded from the counts.
How often is this registry updated?
Quarterly and after each Treasury rate notice in January and July. It was last checked on 2026-10-08.
Download the data
Every table in this report is available as a CSV under CC BY 4.0. The fact sheet lists each value with its source URL and access date.
- derived_metrics.csv (CSV)
- fact_sheet.csv (CSV)
- Public works prompt payment and retainage rules by state (CSV)
- How fast public owners must pay prime contractors: distribution of statutory deadlines, 50 states and DC (checked 2026-10-08) (CSV)
- Maximum retainage on public construction contracts, 50 states and DC (CSV)
- States where retainage is cut or stopped at 50 percent completion (CSV)
- Interest on late public construction payments, by type of rate (CSV)
- How fast prime contractors must pay subcontractors on public work (CSV)
- Federal Prompt Payment Act benchmark versus state public works statutes (CSV)
For journalists and researchers
If you cite only a few, cite these
- Median public owner-to-prime payment deadline: 30 days across 49 jurisdictions (CB&C, statutes checked 2026-10-08).[16][136]
- Public retainage cap: 5% in 30 jurisdictions, 10% in 9, barred in New Mexico.[15][123][99]
- Federal Prompt Payment Act interest rate: 4.75% for July 1 to December 31, 2026 (Treasury Bureau of the Fiscal Service).[7]
Most quotable statistics
- Public owners in the median state have 30 days to pay a prime contractor, more than twice the federal 14-day rule (CB&C registry, checked 2026-10-08).[1][16][136]
- Only Iowa matches the federal 14-day deadline for public progress payments; Illinois state agencies get 90 days.[52][45]
- 30 state and DC public works statutes cap retainage at exactly 5%, and New Mexico bans it outright.[15][99]
- A late public owner pays a median fixed rate of 12% a year in fixed-rate states, about 2.5 times the 4.75% federal Prompt Payment rate.[7][39]
- 16 jurisdictions give primes 7 days to pay subcontractors on public work, matching federal law; North Dakota allows 45 days.[2][107]
- 19 jurisdictions cut or allow cutting retainage at the halfway mark of a public project.[10][123][120]
Press summary
A new registry from Commercial Builders & Contractors reads the public works payment statutes of all 50 states and the District of Columbia. Across 49 jurisdictions that set a day count, a state or local owner has a median 30 days to pay a prime contractor, against 14 days under the federal Prompt Payment Act; only Iowa matches the federal rule, and Illinois state agencies have 90 days. Primes must pay subcontractors within a median 10 days. 27 jurisdictions charge a fixed late-payment rate, a median 12% a year, while the federal rate for July to December 2026 is 4.75%. 30 jurisdictions cap public retainage at 5%, New Mexico bars it, and 19 cut or allow cutting it at 50 percent completion. New Hampshire has no public prompt payment statute located. Each entry links to the statute. The registry is not legal advice.
Suggested headlines
- Public owners get a median 30 days to pay contractors, more than twice the federal deadline
- Only Iowa matches the federal 14-day prompt payment rule for public construction
- 30 states and DC cap public works retainage at 5%; New Mexico bans it
- Late public payments earn a median 12% in fixed-rate states versus 4.75% federally
- 19 jurisdictions cut retainage at the halfway mark of public projects
How to cite this report
Commercial Builders & Contractors. (2026). Prompt payment act construction by state: public works payment deadlines, interest and retainage caps. Retrieved from https://commercialbuildersandcontractors.com/public-construction-prompt-payment-retainage/
Reuse license
Data and tables are licensed CC BY 4.0. Attribution: “Source: Commercial Builders & Contractors, Prompt payment act construction by state: public works payment deadlines, interest and retainage caps” with a link to this page.
Methodology
Selection: for each of the 50 states and DC we read the statute that sets payment timing for public construction (a public works prompt payment act, a general state-agency prompt payment act, or a public contracts code section) and the statute that limits retainage on public works, on 2026-10-08. Federal rules come from 31 U.S.C. 3902, 3903 and 3905, FAR 52.232-27, FAR 32.103 and the Treasury Bureau of the Fiscal Service rate table.
Sources: official legislature or code sites were used for most jurisdictions. Where the official code sits on a portal that scripts cannot open, we read the text from FindLaw's copy and marked the entry: Arkansas, Colorado, Georgia, Indiana, Mississippi, New Jersey, New Mexico, Pennsylvania, Tennessee. Oklahoma sections come from the Oklahoma State Courts Network. Earlier 50-state surveys (Eckert Seamans 2017, ASA 2008, AGC 2013) were used only to find citations and as pages to compare against, never as a source of a value.
Scope and rules: each entry describes a prime contractor and first-tier subcontractor on a state or local public building contract. Where state-agency and local rules differ, the registry reports the state-agency deadline and notes the local one. Retainage is the cap on a $1 million building contract with normal performance. Business and working days are converted to calendar days at 7/5 and flagged. Interest rates are classed as fixed (a stated rate), index-linked (prime, Treasury, Federal Reserve, tax or deposit rate) or set elsewhere (regulation or another code section); fixed monthly rates are annualised by multiplying by 12.
Verification: a copy of every statute page is saved in raw/pages, and scripts/check_quotes.py asserts that 280 verbatim phrases supporting the values appear in those copies. New Hampshire is marked not verified because no statute was located; it is excluded from every count, so totals use 50 jurisdictions (49 states and DC).
Conflicts and limits: statutes often apply only when the contract is silent, and agency rules, grant or federal funding, notice requirements and good-faith disputes can change timing. Absence of a deadline or cap means none was located in the sections reviewed, not proof that none exists. Derived metrics are calculated in scripts/build_report.py and stored in derived_metrics.csv. The registry is checked quarterly; last checked 2026-10-08.
This report summarises statute text as posted on 2026-10-08. It is not legal advice. Public payment deadlines depend on contract terms, agency rules, funding sources and notice requirements, and courts read them closely. Check the statute linked for your state and speak with a construction lawyer licensed there before relying on any deadline.
This report presents published data with its limitations. It is not legal, financial or investment advice.
Sources, ranked by quality
Tier 1: primary and official sources (151)
- [1] Legal Information Institute, Cornell Law School (copy of the U.S. Code). 31 U.S.C. 3903 (regulations; construction progress payments). Current code as posted. Accessed 2026-10-08.
- [2] Legal Information Institute, Cornell Law School (copy of the U.S. Code). 31 U.S.C. 3905 (payment provisions relating to construction contracts). Current code as posted. Accessed 2026-10-08.
- [3] Legal Information Institute, Cornell Law School (copy of the U.S. Code). 31 U.S.C. 3902 (interest penalties). Current code as posted. Accessed 2026-10-08.
- [4] U.S. General Services Administration, Acquisition.gov. FAR 52.232-27 Prompt Payment for Construction Contracts. Current FAR as posted. Accessed 2026-10-08.
- [5] U.S. General Services Administration, Acquisition.gov. FAR 32.103 Progress payments under construction contracts. Current FAR as posted. Accessed 2026-10-08.
- [6] U.S. General Services Administration, Acquisition.gov. FAR 52.232-5 Payments under Fixed-Price Construction Contracts. Current FAR as posted. Accessed 2026-10-08.
- [7] U.S. Department of the Treasury, Bureau of the Fiscal Service. Prompt Payment interest rates, January 2020 to December 2026. Rates through Dec. 31, 2026; page last updated 2026-09-29. Accessed 2026-10-08.
- [8] Legal Information Institute, Cornell Law School (copy of the U.S. Code). 40 U.S.C. 3131 (bonds of contractors of public buildings or works; the Miller Act). Current code as posted. Accessed 2026-10-08.
- [9] U.S. General Services Administration, Acquisition.gov. FAR 28.102-1 General (Bonds statute threshold). Current FAR as posted. Accessed 2026-10-08.
- [10] Alabama Legislature (ALISON). Code of Alabama 39-2-12 (partial payments, retainage, interest). Last amended by Act 2014-404. Accessed 2026-10-08.
- [11] Alabama Legislature (ALISON). Code of Alabama 41-16-3 (timely execution of state contracts). Current code as posted. Accessed 2026-10-08.
- [12] Alaska State Legislature. Alaska Statutes 36.90.200 to 36.90.290 (public construction prompt payment). Current code as posted. Accessed 2026-10-08.
- [13] Alaska State Legislature. Alaska Statutes 45.45.010 (legal rate of interest). Current code as posted. Accessed 2026-10-08.
- [14] Arizona State Legislature. A.R.S. 34-221 (public works contracts: progress payments, retention, interest). Current code as posted. Accessed 2026-10-08.
- [15] California Legislative Information. Cal. Public Contract Code 7201 (retention proceeds, public works). Amended by Stats. 2022, Ch. 121 (AB 2173), effective 2023-01-01. Accessed 2026-10-08.
- [16] California Legislative Information. Cal. Public Contract Code 10261.5 (state agency progress payment interest). Current code as posted. Accessed 2026-10-08.
- [17] California Legislative Information. Cal. Public Contract Code 20104.50 (local agency prompt payment). Current code as posted. Accessed 2026-10-08.
- [18] California Legislative Information. Cal. Public Contract Code 10262 (payment of subcontractors, state contracts). Current code as posted. Accessed 2026-10-08.
- [19] California Legislative Information. Cal. Code of Civil Procedure 685.010 (legal rate on judgments). Current code as posted. Accessed 2026-10-08.
- [20] California Legislative Information. Cal. Public Contract Code 7107 (release of retention within 60 days). Current code as posted. Accessed 2026-10-08.
- [21] FindLaw (Thomson Reuters) copy of the Arkansas Code. Ark. Code 22-9-604 (retainage on public construction contracts), FindLaw copy. Copy current as of 2024-03-28. Accessed 2026-10-08.
- [22] FindLaw (Thomson Reuters) copy of the Arkansas Code. Ark. Code 19-4-1411 (payment processing, maximum times), FindLaw copy. Copy current as of 2024-03-28. Accessed 2026-10-08.
- [23] FindLaw (Thomson Reuters) copy of the Colorado Revised Statutes. C.R.S. 24-91-103 (partial payments, retainage, subcontractor payment), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [24] FindLaw (Thomson Reuters) copy of the Colorado Revised Statutes. C.R.S. 24-30-202 (state controller; payment within 45 days), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [25] Connecticut General Assembly. Conn. Gen. Stat. 4a-71 (prompt payment by state departments and agencies). Revised to January 1, 2025, with 2026 Supplement checked. Accessed 2026-10-08.
- [26] Connecticut General Assembly. Conn. Gen. Stat. 49-41a and 49-41b (public works subcontractor payment; release of retainage). Current code as posted. Accessed 2026-10-08.
- [27] Connecticut General Assembly. Conn. Gen. Stat. 49-41c, 2026 Supplement (state contractor pays subcontractor within 15 days; P.A. 25-168). 2026 Supplement, revised to January 1, 2026. Accessed 2026-10-08.
- [28] Delaware Code Online. 29 Del. C. 6516 (payment of bills; interest on late state payments). Current code as posted. Accessed 2026-10-08.
- [29] Delaware Code Online. 29 Del. C. 6962 (large public works contract procedures; retainage). Current code as posted. Accessed 2026-10-08.
- [30] Council of the District of Columbia, D.C. Law Library. D.C. Code 2-221.02 (Quick Payment: interest penalties; subcontractor payment clause). Current code as posted. Accessed 2026-10-08.
- [31] Council of the District of Columbia, D.C. Law Library. D.C. Code 2-203.01 (retents on construction contracts). Current code as posted. Accessed 2026-10-08.
- [32] The Florida Legislature, Online Sunshine. Fla. Stat. 215.422 (state agency payments; interest). 2026 Florida Statutes. Accessed 2026-10-08.
- [33] The Florida Legislature, Online Sunshine. Fla. Stat. 255.073 (timely payment for construction services by a public entity). 2026 Florida Statutes. Accessed 2026-10-08.
- [34] The Florida Legislature, Online Sunshine. Fla. Stat. 255.078 (public construction retainage). 2026 Florida Statutes; last amended ch. 2023-134. Accessed 2026-10-08.
- [35] The Florida Legislature, Online Sunshine. Fla. Stat. 218.735 (local government prompt payment for construction services). 2026 Florida Statutes; last amended ch. 2023-134. Accessed 2026-10-08.
- [36] FindLaw (Thomson Reuters) copy of the Official Code of Georgia. O.C.G.A. 13-10-80 (public works progress payments and retainage), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [37] FindLaw (Thomson Reuters) copy of the Official Code of Georgia. O.C.G.A. 13-11-2 (Prompt Pay Act definitions; owner includes government), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [38] FindLaw (Thomson Reuters) copy of the Official Code of Georgia. O.C.G.A. 13-11-4 (time limits for payments), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [39] FindLaw (Thomson Reuters) copy of the Official Code of Georgia. O.C.G.A. 13-11-7 (interest), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [40] Hawaii State Legislature. HRS 103-10 (payment for goods and services; interest). Current code as posted. Accessed 2026-10-08.
- [41] Hawaii State Legislature. HRS 103-10.5 (prompt payment to subcontractors). Current code as posted. Accessed 2026-10-08.
- [42] Hawaii State Legislature. HRS 103-32.1 (contract provision for retainage). Current code as posted. Accessed 2026-10-08.
- [43] Idaho State Legislature. Idaho Code 67-2302 (prompt payment for goods and services). Current code as posted. Accessed 2026-10-08.
- [44] Idaho State Legislature. Idaho Code 54-1926 (public works bonds; retainage limit). Current code as posted. Accessed 2026-10-08.
- [45] Illinois General Assembly. 30 ILCS 540 (State Prompt Payment Act), sections 3-2 and 7. Current code as posted. Accessed 2026-10-08.
- [46] Illinois General Assembly. 50 ILCS 505 (Local Government Prompt Payment Act). Current code as posted. Accessed 2026-10-08.
- [47] Illinois General Assembly. 30 ILCS 550/1 (Public Construction Bond Act; local retainage limits). Retainage limits effective 2024-01-01. Accessed 2026-10-08.
- [48] Illinois General Assembly. HB1224 bill status (Public Act 104-0168, state agency retainage). Approved 2025-08-15; effective 2027-06-01. Accessed 2026-10-08.
- [49] FindLaw (Thomson Reuters) copy of the Indiana Code. Indiana Code 5-17-5-1 (late payment penalty), FindLaw copy. Copy current as of 2026-01-01. Accessed 2026-10-08.
- [50] FindLaw (Thomson Reuters) copy of the Indiana Code. Indiana Code 36-1-12-14 (retainage on local public works), FindLaw copy. Copy current as of 2026-01-01. Accessed 2026-10-08.
- [52] Iowa Legislature. Iowa Code 573.12 (payments and retention on public improvement contracts). Iowa Code 2026; retention amended by 2025 Acts, ch 29. Accessed 2026-10-08.
- [53] Iowa Legislature. Iowa Code 573.14 (retention of unpaid funds; interest rate). Iowa Code 2026. Accessed 2026-10-08.
- [54] Kansas Office of Revisor of Statutes. K.S.A. 16-1903 (public construction contracts; payment provisions). Current code as posted. Accessed 2026-10-08.
- [55] Kansas Office of Revisor of Statutes. K.S.A. 16-1904 (retainage on public construction). Current code as posted. Accessed 2026-10-08.
- [56] Kansas Office of Revisor of Statutes. K.S.A. 16-1902 (definitions: public entity). Current code as posted. Accessed 2026-10-08.
- [57] Kentucky General Assembly. KRS 371.405 (Fairness in Construction Act: payment terms). Effective 2025-06-27. Accessed 2026-10-08.
- [58] Kentucky General Assembly. KRS 371.410 (retainage that may be withheld). Effective 2007-06-26. Accessed 2026-10-08.
- [59] Kentucky General Assembly. KRS 371.400 (definitions: contracting entity includes public entities). Effective 2007-06-26. Accessed 2026-10-08.
- [60] Kentucky General Assembly. KRS 45.453 (time period for payment of state bills). Effective 1997-05-30. Accessed 2026-10-08.
- [61] Louisiana State Legislature. La. R.S. 38:2191 (payments under public contracts). Last amended Acts 2024, No. 165, eff. 2024-05-23. Accessed 2026-10-08.
- [62] Louisiana State Legislature. La. R.S. 38:2248 (withholding payment on public works). Current code as posted. Accessed 2026-10-08.
- [63] Louisiana State Legislature. La. R.S. 9:2784 (prompt payment to contractors and subcontractors). As amended by Acts 2026, No. 822. Accessed 2026-10-08.
- [64] Louisiana State Legislature. HB 638 (2026 Regular Session), enrolled: amends R.S. 9:2784. 2026 Regular Session. Accessed 2026-10-08.
- [65] Maine Legislature, Office of the Revisor of Statutes. 10 M.R.S. 1113 (owner's payment obligations). Current code as posted. Accessed 2026-10-08.
- [66] Maine Legislature, Office of the Revisor of Statutes. 10 M.R.S. 1111 (definitions: owner includes the State and municipalities). Current code as posted. Accessed 2026-10-08.
- [67] Maine Legislature, Office of the Revisor of Statutes. 10 M.R.S. 1114 (contractor's and subcontractor's payment obligations). Current code as posted. Accessed 2026-10-08.
- [68] Maine Legislature, Office of the Revisor of Statutes. 5 M.R.S. 1746 (retention of part of contract price on public improvements). Current code as posted. Accessed 2026-10-08.
- [69] Maryland General Assembly. Md. State Finance and Procurement 15-103 (time of payment). Current code as posted. Accessed 2026-10-08.
- [70] Maryland General Assembly. Md. State Finance and Procurement 15-104 (interest on late payments). Current code as posted. Accessed 2026-10-08.
- [71] Maryland General Assembly. Md. State Finance and Procurement 15-226 (prompt payment of subcontractors). Current code as posted. Accessed 2026-10-08.
- [72] Maryland General Assembly. Md. State Finance and Procurement 17-110 (retainage on public construction). Current code as posted. Accessed 2026-10-08.
- [73] The 194th General Court of the Commonwealth of Massachusetts. M.G.L. c. 30, s. 39K (public building contracts: periodic payments, retention, interest). Current code as posted. Accessed 2026-10-08.
- [74] The 194th General Court of the Commonwealth of Massachusetts. M.G.L. c. 30, s. 39F (payment of subcontractors on public works). Current code as posted. Accessed 2026-10-08.
- [75] Michigan Legislature. MCL 125.1562 (public agency progress payments; interest), Act 524 of 1980. Current code as posted. Accessed 2026-10-08.
- [76] Michigan Legislature. MCL 125.1563 (retainage on public agency construction contracts). Current code as posted. Accessed 2026-10-08.
- [77] Michigan Legislature. MCL 17.54 (late payment by principal executive departments). Current code as posted. Accessed 2026-10-08.
- [78] Minnesota Office of the Revisor of Statutes. Minn. Stat. 16A.124 (prompt payment of state agency bills). Current code as posted. Accessed 2026-10-08.
- [79] Minnesota Office of the Revisor of Statutes. Minn. Stat. 471.425 (prompt payment of local government bills; subcontractors). Current code as posted. Accessed 2026-10-08.
- [80] Minnesota Office of the Revisor of Statutes. Minn. Stat. 15.72 (progress payments on public contracts; retainage). Current code as posted. Accessed 2026-10-08.
- [81] FindLaw (Thomson Reuters) copy of the Mississippi Code. Miss. Code 31-5-25 (payment of sums due contractors), FindLaw copy. Copy current as of 2025-01-01. Accessed 2026-10-08.
- [82] FindLaw (Thomson Reuters) copy of the Mississippi Code. Miss. Code 31-5-27 (contractor payments to subcontractors), FindLaw copy. Copy current as of 2025-01-01. Accessed 2026-10-08.
- [83] FindLaw (Thomson Reuters) copy of the Mississippi Code. Miss. Code 31-5-33 (retainage on public construction), FindLaw copy. Copy current as of 2025-01-01. Accessed 2026-10-08.
- [84] Missouri Revisor of Statutes. RSMo 8.960 (prompt payments, progress payments, retainage on public works; formerly 34.057). Effective 2022-08-28. Accessed 2026-10-08.
- [85] Montana Legislature (Montana Code Annotated 2025). MCA 17-8-242 (interest assessed on amounts due from state agencies). Current code as posted. Accessed 2026-10-08.
- [86] Montana Legislature (Montana Code Annotated 2025). MCA 18-2-316 (limit on retainage for public contracts). Current code as posted. Accessed 2026-10-08.
- [87] Montana Legislature (Montana Code Annotated 2025). MCA 28-2-2103 (payment to contractor and subcontractor). Current code as posted. Accessed 2026-10-08.
- [88] Nebraska Legislature. Neb. Rev. Stat. 81-2403 (Prompt Payment Act: payment in full). Current code as posted. Accessed 2026-10-08.
- [89] Nebraska Legislature. Neb. Rev. Stat. 81-2404 (Prompt Payment Act: interest). Current code as posted. Accessed 2026-10-08.
- [90] Nebraska Legislature. Neb. Rev. Stat. 45-1202 (Construction Prompt Pay Act definitions; State excluded). Current code as posted. Accessed 2026-10-08.
- [91] Nebraska Legislature. Neb. Rev. Stat. 45-1203 (Construction Prompt Pay Act: payment deadlines). Current code as posted. Accessed 2026-10-08.
- [92] Nebraska Legislature. Neb. Rev. Stat. 45-1204 (Construction Prompt Pay Act: retainage). Current code as posted. Accessed 2026-10-08.
- [93] Nebraska Legislature. Neb. Rev. Stat. 45-104.02 (interest rate on delinquent state taxes). Current code as posted. Accessed 2026-10-08.
- [94] Nevada Legislature. NRS chapter 338 (public works: 338.515, 338.530, 338.550, 338.555). Current code as posted. Accessed 2026-10-08.
- [95] New Hampshire General Court. RSA 447:16 (bond required on public works). Current code as posted. Accessed 2026-10-08.
- [97] FindLaw (Thomson Reuters) copy of the New Jersey Statutes. N.J.S.A. 2A:30A-2 (Prompt Payment Act), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [98] FindLaw (Thomson Reuters) copy of the New Jersey Statutes. N.J.S.A. 40A:11-16.3 (retainage on local contracts), FindLaw copy. Copy current as of 2024-01-01. Accessed 2026-10-08.
- [99] FindLaw (Thomson Reuters) copy of the New Mexico Statutes. NMSA 57-28-5 (payments; prompt pay required; withholding prohibited), FindLaw copy. Copy current as of 2024-01-01. Accessed 2026-10-08.
- [100] FindLaw (Thomson Reuters) copy of the New Mexico Statutes. NMSA 57-28-2 (definitions: owner includes local public bodies and state agencies), FindLaw copy. Copy current as of 2024-01-01. Accessed 2026-10-08.
- [101] New York State Senate. N.Y. State Finance Law 179-f (state agency interest on late payments). Current code as posted. Accessed 2026-10-08.
- [102] New York State Senate. N.Y. State Finance Law 139-f (prompt payment and retainage, public works). Current code as posted. Accessed 2026-10-08.
- [103] New York State Senate. N.Y. General Municipal Law 106-b (municipal prompt payment, retainage, interest). Current code as posted. Accessed 2026-10-08.
- [104] West Virginia Legislature. W. Va. Code 7-5-7 (county Prompt Pay Act of 1995). Current code as posted. Accessed 2026-10-08.
- [105] West Virginia Legislature. W. Va. Code chapter 5A, article 3 (Purchasing Division) section list. Current code as posted. Accessed 2026-10-08.
- [106] North Carolina General Assembly. N.C. Gen. Stat. 143-134.1 (interest on final payments; payments to subcontractors; retainage). Current code as posted. Accessed 2026-10-08.
- [107] North Dakota Legislative Branch. N.D.C.C. chapter 13-01.1 (prompt payment by state agencies and political subdivisions). Current code as posted. Accessed 2026-10-08.
- [108] North Dakota Legislative Branch. N.D.C.C. chapter 48-01.2 (public improvement contracts; 48-01.2-13 payments and retainage). Current code as posted. Accessed 2026-10-08.
- [109] Ohio Legislative Service Commission (codes.ohio.gov). Ohio Rev. Code 126.30 (interest on late state agency payments). Effective 2023-10-03. Accessed 2026-10-08.
- [110] Ohio Legislative Service Commission (codes.ohio.gov). Ohio Rev. Code 153.12 (award of public improvement contracts; partial payments). Effective 2026-09-17 (S.B. 262, 136th G.A.). Accessed 2026-10-08.
- [111] Ohio Legislative Service Commission (codes.ohio.gov). Ohio Rev. Code 153.14 (payment for materials delivered). Effective 2025-09-30. Accessed 2026-10-08.
- [113] Ohio Legislative Service Commission (codes.ohio.gov). Ohio Rev. Code 4113.61 (payment to subcontractors and material suppliers). Effective 2011-09-29. Accessed 2026-10-08.
- [114] Oklahoma State Courts Network (OSCN). 61 O.S. 223 (Fair Pay for Construction Act: progress payments). Current code as posted. Accessed 2026-10-08.
- [115] Oklahoma State Courts Network (OSCN). 61 O.S. 224 (payments to subcontractors). Current code as posted. Accessed 2026-10-08.
- [116] Oklahoma State Courts Network (OSCN). 61 O.S. 226 (retainage in public construction contracts and subcontracts). Current code as posted. Accessed 2026-10-08.
- [117] Oklahoma State Courts Network (OSCN). 61 O.S. 113.1 (partial payment; retainage), version amended by SB 1520 (2022). Amended eff. 2022-11-01. Accessed 2026-10-08.
- [118] Oklahoma State Courts Network (OSCN). 61 O.S. 222 (definitions: owner means state and local public entities). Current code as posted. Accessed 2026-10-08.
- [119] Oklahoma State Courts Network (OSCN). 62 O.S. 34.72 (interest on late state invoice payments). Current code as posted. Accessed 2026-10-08.
- [120] Oregon State Legislature. ORS chapter 279C (279C.570 prompt payment, interest, retainage; 279C.580 subcontractors). 2025 edition as posted. Accessed 2026-10-08.
- [121] FindLaw (Thomson Reuters) copy of the Pennsylvania Consolidated Statutes. 62 Pa.C.S. 3932 (government agency progress payments; interest), FindLaw copy. Copy current as of 2026-01-01. Accessed 2026-10-08.
- [122] FindLaw (Thomson Reuters) copy of the Pennsylvania Consolidated Statutes. 62 Pa.C.S. 3933 (payment of subcontractors), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [123] FindLaw (Thomson Reuters) copy of the Pennsylvania Consolidated Statutes. 62 Pa.C.S. 3921 (retainage), FindLaw copy. Copy current as of 2026-01-01. Accessed 2026-10-08.
- [124] State of Rhode Island General Assembly. R.I. Gen. Laws 42-11.1-3 (time period for payment). Current code as posted. Accessed 2026-10-08.
- [125] State of Rhode Island General Assembly. R.I. Gen. Laws 42-11.1-6 (computation of interest payment). Current code as posted. Accessed 2026-10-08.
- [126] State of Rhode Island General Assembly. R.I. Gen. Laws 37-12-10 (retainers on public works contracts). Current code as posted. Accessed 2026-10-08.
- [127] South Carolina Legislature. S.C. Code chapter 29-6 (payments to contractors and subcontractors; owner includes government). Current code as posted. Accessed 2026-10-08.
- [128] South Carolina Legislature. S.C. Code 11-35-3030 (Consolidated Procurement Code: bonds and retention). Current code as posted. Accessed 2026-10-08.
- [129] South Dakota Legislature. SDCL chapter 5-26 (prompt payment by state and local agencies). Current code as posted. Accessed 2026-10-08.
- [130] South Dakota Legislature. SDCL 54-3-16 (categories of statutory interest rates). Current code as posted. Accessed 2026-10-08.
- [131] South Dakota Legislature. SDCL chapter 5-18B (public improvement contracts; 5-18B-11 retention and interest). Current code as posted. Accessed 2026-10-08.
- [132] FindLaw (Thomson Reuters) copy of the Tennessee Code. Tenn. Code 12-4-703 (payment deadline for state agencies), FindLaw copy. Copy current as of 2024-01-02. Accessed 2026-10-08.
- [133] FindLaw (Thomson Reuters) copy of the Tennessee Code. Tenn. Code 12-4-704 (interest on overdue payments), FindLaw copy. Copy current as of 2024-01-02. Accessed 2026-10-08.
- [134] FindLaw (Thomson Reuters) copy of the Tennessee Code. Tenn. Code 12-4-707 (payments to subcontractors), FindLaw copy. Copy current as of 2024-01-02. Accessed 2026-10-08.
- [135] FindLaw (Thomson Reuters) copy of the Tennessee Code. Tenn. Code 66-34-103 (retainage, public and private), FindLaw copy. Current code as posted. Accessed 2026-10-08.
- [136] Texas Legislature (Texas Constitution and Statutes). Tex. Gov't Code chapter 2251 (payment for goods and services by governmental entities). Current code as posted. Accessed 2026-10-08.
- [137] Texas Legislature (Texas Constitution and Statutes). Tex. Gov't Code 2252.032 (retainage on public works contracts). Current code as posted. Accessed 2026-10-08.
- [138] Utah State Legislature. Utah Code 15-6-2 (time for payment by state agencies). Current code as posted. Accessed 2026-10-08.
- [139] Utah State Legislature. Utah Code 15-6-3 (interest on overdue payments). Current code as posted. Accessed 2026-10-08.
- [140] Utah State Legislature. Utah Code 15-6-5 (contractors' payments to subcontractors). Current code as posted. Accessed 2026-10-08.
- [141] Utah State Legislature. Utah Code 13-8-5 (limitation on retention proceeds). Version effective 2023-02-27; superseded 2027-01-01. Accessed 2026-10-08.
- [142] Vermont General Assembly. 9 V.S.A. chapter 102 (prompt payment; owner includes the State and municipalities). Current code as posted. Accessed 2026-10-08.
- [143] Virginia General Assembly (Code of Virginia, LIS). Va. Code 2.2-4347 (prompt payment definitions: payment date). Current code as posted. Accessed 2026-10-08.
- [144] Virginia General Assembly (Code of Virginia, LIS). Va. Code 2.2-4354 (payment clauses: subcontractor payment). Last amended 2023, cc. 675, 676. Accessed 2026-10-08.
- [145] Virginia General Assembly (Code of Virginia, LIS). Va. Code 2.2-4355 (interest penalty). Current code as posted. Accessed 2026-10-08.
- [146] Virginia General Assembly (Code of Virginia, LIS). Va. Code 2.2-4333 (retainage on construction contracts). Current code as posted. Accessed 2026-10-08.
- [147] Washington State Legislature. RCW 39.76.011 (interest on unpaid public contracts). Current code as posted. Accessed 2026-10-08.
- [148] Washington State Legislature. RCW 60.28.011 (retainage on public improvement contracts). Current code as posted. Accessed 2026-10-08.
- [149] Washington State Legislature. RCW 39.04.250 (payment of subcontractors on public works). Current code as posted. Accessed 2026-10-08.
- [150] Wisconsin State Legislature. Wis. Stat. 16.528 (prompt payment by state agencies; subcontractors). Current code as posted. Accessed 2026-10-08.
- [151] Wisconsin State Legislature. Wis. Stat. 66.0135 (interest on late payments by local governmental units). Current code as posted. Accessed 2026-10-08.
- [152] Wisconsin State Legislature. Wis. Stat. 66.0901(9) (municipal public works estimates and retainage). Current code as posted. Accessed 2026-10-08.
- [153] Wisconsin State Legislature. Wis. Stat. 71.82(1)(a) (interest rate on assessed taxes). Current code as posted. Accessed 2026-10-08.
- [154] Wyoming Legislature. Wyo. Stat. Title 16 (16-6-602 agency payment and interest; 16-6-702 retainage). Current code as posted. Accessed 2026-10-08.
Tier 2: trade bodies, market research, company data (1)
- [112] County Commissioners Association of Ohio. Bulletin 2026-05: Senate Bill 262, construction contracts must note variation from standard form. September 2026. Accessed 2026-10-08.
Tier 3: journalism and expert commentary (9)
- [51] Indiana Capital Chronicle. Bill to reduce dollars withheld from construction contractors (HB 1033, 2025). Published 2025-03-13. Accessed 2026-10-08.
- [96] NH Construction Law (law firm blog). #47: Does New Hampshire Need a Prompt Pay Statute? (2016). Published 2016-08-31. Accessed 2026-10-08.
- [155] Eckert Seamans Cherin & Mellott, LLC. Fifty State Survey of Prompt Payment Acts for Construction Contracts (revised 2017-05-24). Revised 2017-05-24. Accessed 2026-10-08.
- [156] Associated General Contractors of America. Prompt Payment State-by-State Map. Information current as of 2013-10-15. Accessed 2026-10-08.
- [157] Levelset. Prompt Payment Rules, Requirements and FAQs. Undated web guide. Accessed 2026-10-08.
- [158] Foundation of the American Subcontractors Association. Retainage Law in the 50 States (2008), filed with the Oregon Legislature in 2013. Copyright 2008. Accessed 2026-10-08.
- [159] Construction Coverage. What is Retainage in Construction? 2026 Guide to Laws. Undated web guide. Accessed 2026-10-08.
- [160] Municipal Research and Services Center (MRSC). Options for Waiving Retainage and Bonds on Public Works Projects. December 2024. Accessed 2026-10-08.
- [161] Saul Ewing LLP. Recent Retainage Reforms in Illinois (2025-08-13). Published 2025-08-13. Accessed 2026-10-08.