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.

1. 1. Owner to Contractor

      Payment to contractor must be made in 30 days from completion of work and presentation of proper invoice.

   2. Contractor to Subcontractor

      Payment to subcontractor must be made in 7 days from payment by the state unless contract states otherwise.

   3. Retainage

      1. Retainage cannot exceed the amount that is being withheld from you.
      2. There is not a provision in the statute about the contract stating otherwise.

   4. 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.

   5. Interest and Attorneys’ Fees

      If there is no payment or late payment

      1. Can recover interest at the legal amount currently charged by the state.
      2. There is no attorneys’ fees provision in the public prompt payment act.