Skip to Main Content

Alabama: State-by-State Summary of Prompt Payment

Alabama

Owner to Prime Contractor (Private): Unless otherwise agreed by contract, 30 days after receipt of invoice.

Prime Contractor to Subcontractor (Private): Unless otherwise agreed by contract, 7 days after receipt of payment from owner.

Interest/Penalties (Private): 1% interest per month. Attorney’s fees and costs awarded to prevailing party. 

Owner to Prime Contractor (Public): 30 days after work is completed and a proper invoice is submitted.

Prime Contractor to Subcontractor (Public): Unless otherwise agreed by contract, 7 days after receipt of payment from the owner.

Interest/Penalties (Public): Interest at the legal amount currently charged by the state. 

Pay-If-Paid Permissible: Yes.

Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Alabama since that date. Visit our 50-State Construction Law Map for information on other states.