Owner to Prime Contractor (Private): N/A
Prime Contractor to Subcontractor (Private): 7 days after receipt of payment from owner.
Interest/Penalties (Private): Interest at a rate of rate of 1% per month.
Owner to Prime Contractor (Public): Except for projects with the Department of Transportation, final payment is due 45 days after acceptance or occupancy. Progress payments are made per the contract terms.
Prime Contractor to Subcontractor (Public): 7 days after receipt of payment from owner.
Interest/Penalties (Public): Interest at a rate of rate of 1% per month.
Pay-If-Paid Permissible: No.
Special Notes: “Pay-when-paid” is also unenforceable.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by North Carolina since that date. Visit our 50-State Construction Law Map for information on other states.