Prompt Payment Acts (Public Projects) State Law Survey

Summary

This Prompt Payment Acts State Law Survey indicates whether each state has enacted a prompt payment act (PPA) for public construction projects, and provides details about each state's PPA and related legislation. All state PPAs provide for a statutory payment period within which contractors must be paid by owners; however, states vary with respect to whether the parties are permitted to contract for alternative payment periods. State PPAs often impose specific interest rates or penalties for late payments or amounts unreasonably withheld, and some also place restrictions on the maximum amount(s) owners may retain as security for contract completion pursuant to the terms of the contract. There may be separate penalties for unlawful retainage or retaining amounts beyond the statutorily prescribed amount. Finally, many PPAs provide for recovery of reasonable attorney's fees and costs by prevailing parties in actions to enforce rights or recover payments under the PPA.