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Construction law

prompt payment statutes

Prompt payment statutes are laws that require the payment of contractors and subcontractors within a certain period of time, and prescribe interest and penalties for late payments. In some states these laws only apply to public works construction projects that are funded by the government—and sometimes only to public works projects over a certain dollar amount. There is also a federal Prompt Payment Act for federal construction projects.

In Ohio, prompt payment statutes are designed to ensure that contractors and subcontractors working on construction projects are paid in a timely manner. Ohio Revised Code Section 4113.61 requires public authorities to make prompt payments to contractors for construction contracts. Payments are typically due within 30 days of the invoice date or the delivery of the goods or services, whichever is later. For subcontractors, once the contractor receives payment from the public authority, the contractor must pay the subcontractors within 10 days. If payments are not made within these time frames, interest penalties may apply. The Ohio prompt payment statutes generally apply to public construction projects, including those funded by the state or local governments. Additionally, the federal Prompt Payment Act applies to federal construction projects, ensuring that contractors and subcontractors on these projects are paid on time and providing similar remedies for late payments, including interest penalties.

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Construction law

prompt payment statutes

Individual & Family Legal Plan

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Ohio State Code

Construction law

prompt payment statutes

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