💵 Prompt Payment Calculator

Calculate prompt payment deadlines and penalties for public and private construction projects.

What is Prompt Payment?

Prompt payment laws require owners and contractors to pay within specified timeframes or face penalties, including interest and attorney fees.

Why It Matters

Late payments hurt cash flow. Prompt payment laws give you leverage to collect faster and recover penalties.

Public Works Deadlines (Selected States)

State	Owner to GC	GC to Sub	Penalty
California	30 days	7 days after GC paid	2% per month
Texas	31 days	7 days after GC paid	1.5% per month
Florida	25 days	7 days after GC paid	1% per month
New York	30 days	7 days after GC paid	1% per month
Illinois	30 days	7 days after GC paid	2% per month
Arizona	30 days	7 days after GC paid	1% per month
Nevada	30 days	7 days after GC paid	1% per month
Washington	30 days	7 days after GC paid	1% per month

Private Works Deadlines (Selected States)

State	Owner to GC	GC to Sub	Penalty
California	30 days	7 days after GC paid	2% per month
Texas	30 days	7 days after GC paid	1.5% per month
Florida	30 days	7 days after GC paid	1% per month
New York	30 days	7 days after GC paid	1% per month

How to Calculate Penalties

Step 1: Determine Payment Deadline

• Invoice Date: _______________
• Payment Deadline: Invoice Date + Prompt Payment Period = _______________

Step 2: Calculate Days Late

• Payment Received Date: _______________
• Days Late: Payment Received Date - Payment Deadline = _____ days

Step 3: Calculate Penalty

Monthly Penalty = Unpaid Amount × Penalty Rate
Daily Penalty = Monthly Penalty ÷ 30
Total Penalty = Daily Penalty × Days Late

Example:

• Unpaid Amount: $50,000
• Penalty Rate: 2% per month
• Days Late: 45 days
• Monthly Penalty: $50,000 × 0.02 = $1,000
• Daily Penalty: $1,000 ÷ 30 = $33.33
• Total Penalty: $33.33 × 45 = $1,500

Interactive Calculator

Interactive calculator component coming soon

For now, use this process:

1. Select Your State: _______________
2. Project Type: Public Works / Private Works
3. Your Role: Owner / GC / Subcontractor
4. Invoice Date: _______________
5. Payment Deadline: _______________
6. Payment Received Date: _______________
7. Days Late: _____ days
8. Unpaid Amount: $_______
9. Penalty Rate: _____% per month
10. Total Penalty: $_______

Common Prompt Payment Requirements

What Triggers Prompt Payment

• Properly submitted invoice
• Work completed and accepted
• No disputes or defects
• All required documentation provided

What Doesn't Count

• Incomplete invoices
• Work not accepted
• Bona fide disputes
• Missing documentation

Recovering Prompt Payment Penalties

1. Send Demand Letter

   • Reference prompt payment law
   • Calculate penalty amount
   • Set deadline for payment

2. File Lawsuit

   • Include penalty claim
   • Request attorney fees
   • Document all communications

3. Keep Records

   • Invoice dates
   • Payment dates
   • All correspondence
   • Contract terms

Pro Tip

Always reference prompt payment laws in your payment demands. It often speeds up payment.

Related Resources

• Lien Deadline Calculator
• Statute of Limitations Calculator
• Payment Guides