Public Prompt Pay Act, Ala. Code § 41-16-3 (1975)
The public prompt pay act is the applicable Alabama construction law when the State of Alabama is a party to the contract.
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Owner to Contractor
Payment to contractor must be made in 30 days from completion of work and presentation of proper invoice.
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Contractor to Subcontractor
Payment to subcontractor must be made in 7 days from payment by the state unless contract states otherwise.
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Retainage
- Retainage cannot exceed the amount that is being withheld from you.
- There is not a provision in the statute about the contract stating otherwise.
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Disputing Pay Request
If pay request is disputed the party disputing the pay request must give notification 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.
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Interest and Attorneys’ Fees
If there is no payment or late payment
- Can recover interest at the legal amount currently charged by the state.
- There is no attorneys’ fees provision in the public prompt payment act.
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