Owner to Prime Contractor (Private): Unless otherwise agreed by contract, 20 days after the end of the billing period or 20 days after delivery of invoice, whichever is later. Retainage shall be released within 30 days after final acceptance.
Prime Contractor to Subcontractor (Private): The later of 7 days after receipt of payment from owner or 7 days after receipt of invoice. If retainage isn’t withheld by owner, retainage must be released within 30 days after final acceptance.
Interest/Penalties (Private): Interest at the rate set forth in the contract, otherwise at the one-year United States Treasury bill rate plus 6%. If determined in litigation/arbitration that withholding was wrongful, a penalty of 1% is assessed on all such withheld funds as a penalty. Attorneys’ fees awarded to substantially prevailing party.
Owner to Prime Contractor (Public): Unless otherwise agreed by contract, 20 days after the end of the billing period or 20 days after delivery of invoice, whichever is later. Retainage shall be released within 30 days after final acceptance.
Prime Contractor to Subcontractor (Public): The later of 7 days after receipt of payment from owner or 7 days after receipt of invoice. If retainage isn’t withheld by owner, retainage must be released within 30 days after final acceptance.
Interest/Penalties (Public): Interest at the rate set forth in the contract, otherwise at the one-year United States Treasury bill rate plus 6%. If determined in litigation/arbitration that withholding was wrongful, a penalty of 1% is assessed on all such withheld funds as a penalty. Attorneys’ fees awarded to substantially prevailing party.
Pay-If-Paid Permissible: Yes.
Special Notes: Contractor must disclose to subcontractors the date that payment is due from owner to contractor, otherwise contractor must pay the subcontractor as though contractor received payment from the owner within 20 days after the end of the billing period or delivery of the invoice (whichever is later) regardless of whether the contractor actually received payment.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Maine since that date. Visit our 50-State Construction Law Map for information on other states.