Owner to Prime Contractor (Private): 7 days after the date specified in the contract, otherwise: 15 days after the earlier of receipt of the occupancy permit or receipt of invoice.
Prime Contractor to Subcontractor (Private): 7 days after receipt of payment from owner.
Interest/Penalties (Private): Interest at a rate of 1.5% per month. Reasonable attorney fees awarded to prevailing contractor.
Owner to Prime Contractor (Public): Unless otherwise agreed by contract, 30 days, excluding legal holidays, after receipt of invoice.
Prime Contractor to Subcontractor (Public): 7 days after receipt of payment from owner.
Interest/Penalties (Public): Interest at rate determined by mayoral regulation, not less than 1%.
Pay-If-Paid Permissible: Yes, but clause is not a defense to a lien or bond claim.
Special Notes: Contractors are required to include a flow-down clause in their subcontracts obligating subcontractors to make payments to lower tier firms on the same basis on public projects.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Alabama since that date. Visit our 50-State Construction Lien Law and Prompt Pay Map for information on other states.