Private Prompt Pay Act, Ala. Code § 8-29-1 (1975)
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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))
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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)
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Retainage
- Retainage withheld by owner shall not exceed 10%, and after 50% project completion, no further retainage shall be withheld.
- Contractors and subcontractors are subject to same limitations.
(Ala. Code § 8-29-3(f)(g)(i))
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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)
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Interest and Attorneys’ Fees
If there is no payment or late payment
- Can recover interest at 12% per year. (Ala. Code § 8-29-3(d))
- Can recover attorneys’ fees. (Ala. Code § 8-29-6)

