By Adrien Pickard – For ConstructionPros.com
Prompt payment laws regulate how and when contractors, subcontractors and suppliers get paid. Learn how these statutes vary by state and project type, and what they mean for your construction business.
Prompt payment statutes are laws enacted at the federal and state levels that set specific deadlines for payment and limit the amount of retention that can be withheld on construction projects. These statutes can apply to both public and private construction work, depending on the jurisdiction, and are designed to ensure that contractors, subcontractors and suppliers are paid promptly and fully for their work.