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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 Nebraska, prompt payment statutes are designed to ensure that contractors and subcontractors are paid in a timely manner for their work on construction projects. Nebraska Revised Statute 45-1201 to 45-1210, known as the Nebraska Construction Prompt Pay Act, applies to both private and public construction projects. This act requires that a contractor must be paid within 30 days after the owner receives a request for payment, and a subcontractor must be paid within 10 days after the contractor receives payment from the owner. If payment is not made within these time frames, interest may accrue on the unpaid amount at a rate specified by the statute. For public works projects, the statutes ensure that contractors and subcontractors working on projects funded by the state or local governments are also paid promptly. The federal Prompt Payment Act complements state law by mandating timely payment for federal construction projects, with its own set of deadlines and interest penalties for late payments.

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Construction law

prompt payment statutes

Individual & Family Legal Plan

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Nebraska State Code

Nebraska State Code

Construction law

prompt payment statutes

Articles