Owner to Prime Contractor (Private): For contracts of $3,000,000 or more, payment must be approved within 15 days after receipt of the invoice. Payment must be made 45 days after approval.
Prime Contractor to Subcontractor (Private): For projects worth $3,000,000 or greater, payment is due 7 days after the date set forth for payment in the prime contract.
Interest/Penalties (Private): Interest at a rate determined in the court’s discretion up to 12% per annum.
Owner to Prime Contractor (Public): 15 days after receipt of invoice. If the entity is a commonwealth entity, payments must be made within 30 days. Final payment is due 65 days after invoice.
Prime Contractor to Subcontractor (Public): Immediately after receipt of payment from owner.
Interest/Penalties (Public): Daily interest at Federal Reserve rediscount rate plus 3%.
Pay-If-Paid Permissible: No, except where the owner is insolvent and this exception is clearly stated in the contract.
Special Notes: Contractor must share interest payments received from owner proportionately with its subcontractors.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Massachusetts since that date. Visit our 50-State Construction Law Map for information on other states.