Owner to Prime Contractor (Private): Unless otherwise provided by contract, 20 days after the end of the billing period or delivery of invoice, whichever is later.
Prime Contractor to Subcontractor (Private): 7 days after the later of receipt of payment from owner or receipt of subcontractor’s invoice.
Interest/Penalties (Private): Interest at statutory rate plus a penalty of 1% per month for amounts wrongfully withheld. Attorneys’ fees awarded to prevailing party.
Owner to Prime Contractor (Public): Unless otherwise provided by contract, 20 days after the end of the billing period or delivery of invoice, whichever is later.
Prime Contractor to Subcontractor (Public): 7 days after the later of receipt of payment from owner or receipt of subcontractor’s invoice.
Interest/Penalties (Public): Interest at statutory rate plus a penalty of 1% per month for amounts wrongfully withheld. Attorneys’ fees awarded to prevailing party.
Pay-If-Paid Permissible: Unclear. Vermont has not yet addressed contingent payment clauses.
Special Notes: Contractor must disclose to subcontractors the due date for payments from the owner otherwise contractor is obligated to pay its subcontractors as if owner made timely payment even if it hasn’t done so.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Vermont since that date. Visit our 50-State Construction Law Map for information on other states.