Private Prompt Pay Act, Ala. Code § 8-29-1 (1975)

1. Owner to Contractor

   Payment to contractor must be made in 30 days from pay request unless contract states otherwise. (Ala. Code § 8-29-3)

   Final payment from owner is due no later than 60 days after completion of contractor’s work or substantial completion, whichever occurs first.

   (Ala. Code § 8-29-3(l))

2. Contractor to Subcontractor

   Payment to subcontractor must be made in 7 days from payment by the owner unless contract states otherwise. (Ala. Code § 8-29-3)

3. Retainage

   1. Retainage withheld by owner shall not exceed 10%, and after 50% project completion, no further retainage shall be withheld.
   2. Contractors and subcontractors are subject to same limitations.

   (Ala. Code § 8-29-3(f)(g)(i))

4. Disputing Pay Request

   If pay request is disputed the party disputing that request must notify that they dispute the request in writing in:

   • 15 days from pay request if you are the owner.
   • 5 days from pay request if you are the contractor or subcontractor.

   (Ala. Code § 8-29-4)

5. Interest and Attorneys’ Fees

   If there is no payment or late payment

   1. Can recover interest at 12% per year. (Ala. Code § 8-29-3(d))
   2. Can recover attorneys’ fees. (Ala. Code § 8-29-6)