Construction receivables · updated November 12, 2026
Construction lien and prompt pay deadlines by state
The short answer
On private jobs, subcontractors most commonly have 90 to 120 days after last furnishing or completion to record a mechanics lien (the range runs from about 45 days to 6 months or more), often after a preliminary notice; on public jobs, payment bonds under the Miller Act and state Little Miller Acts take the place of liens. A construction factor checks these rights before it advances on your pay application.
Lien deadlines and notices
| State | Preliminary notice | Lien claim deadline | Enforce by |
|---|---|---|---|
| Alabama | Not required for original contractors. Subcontractors and suppliers must give the owner written notice… | Generally within 4 months after last furnishing for subcontractors and suppliers (6 months for original… | Generally within 6 months after the entire debt matures (Ala. Code §35-11-221) |
| Alaska | Not generally required. An optional notice of right to lien (AS 34.35.064) shifts the burden to the owner… | Generally within 120 days after the claimant last furnishes labor or materials; if a notice of completion is… | Within 6 months after recording the claim of lien, extendable once by 6 months with a recorded notice of… |
| Arizona | Required for most claimants: a preliminary 20-day notice to the owner, original contractor, lender and… | Generally within 120 days after completion of the project, or 60 days after a recorded notice of completion | Foreclosure suit within 6 months after recording the lien, with a lis pendens recorded within 5 days of filing |
| Arkansas | On residential work of 4 or fewer units, the general contractor must give the owner a pre-construction… | Generally within 120 days after last furnishing labor or materials, filed with the circuit clerk of the county | Within 15 months after the lien is filed |
| California | Subs and suppliers must serve a 20-day preliminary notice on the owner, prime contractor and lender within… | Generally within 90 days after completion of the work of improvement, or 30 days after a recorded notice of… | Within 90 days after recording the lien |
| Colorado | Not generally required at the start of a project, but a notice of intent to lien must be served on the owner… | Generally within 4 months after last furnishing labor or materials (2 months for day laborers) | Generally within 6 months after last work or completion, with a notice of the action recorded |
| Connecticut | Not required before work. Subs without a written, owner-assented contract must serve a notice of intent on… | Generally 90 days after the claimant stops furnishing labor or materials, recorded with the town clerk, with… | Foreclosure action and lis pendens within 1 year after the lien is recorded (§49-39) |
| Delaware | Not generally required | Generally 120 days after completing labor or last delivering materials, or 120 days after final payment is… | The statement of claim is filed in Superior Court and starts the lien action itself, so there is generally… |
| District of Columbia | Not generally required | Notice of intent recorded in the land records during construction or within 90 days after the earlier of… | Suit within 180 days after the notice of intent is recorded, plus a notice of pendency of action within 10… |
| Florida | Lienors not in privity with the owner must serve a Notice to Owner before starting or within 45 days after… | Generally 90 days after final furnishing of labor, services or materials (§713.08) | Generally 1 year after the claim of lien is recorded, unless shortened by the owner (§713.22) |
| Georgia | When a Notice of Commencement is filed, lower-tier subs and suppliers must serve a Notice to Contractor… | Generally 90 days after last furnishing labor, services or materials, filed with the county Clerk of… | Suit within 365 days after filing the lien, plus a notice of commencement of the action within 30 days after… |
| Hawaii | Not generally required | Application for lien filed in circuit court no later than 45 days after the date of completion of the… | Within 3 months after the court enters the order directing the lien to attach |
| Idaho | Not generally required for subcontractors or suppliers. General contractors on residential jobs over $2,000… | Generally 90 days after last furnishing labor or materials (Idaho Code §45-507), recorded in the county… | Generally 6 months after the lien is filed (Idaho Code §45-510) |
| Illinois | Generally not required, except on owner-occupied single-family homes, where subs must notify the owner… | Subcontractors generally must serve notice on the owner within 90 days after last furnishing; recording… | 2 years after completion of the work, or 30 days after receiving an owner's demand to sue |
| Indiana | Required only on owner-occupied 1 to 2 unit homes: subs and suppliers must notify the owner within 30 days… | Generally 90 days after last furnishing labor or materials; 60 days on residential (Class 2) projects | 1 year after the lien is recorded, or 30 days after receiving an owner's written notice to sue |
| Iowa | On residential projects, subcontractors must post a preliminary notice on the state Mechanics' Notice and… | Generally post the lien on the MNLR within 90 days after last furnishing for full protection; later postings… | Generally within 2 years and 90 days after last furnishing, or within 30 days of an owner's written demand |
| Kansas | Not generally required on commercial work; residential liens require a warning statement to the owner, and… | Generally 3 months after last furnishing for subcontractors and suppliers, extendable to 5 months on… | 1 year after the lien statement is filed (K.S.A. 60-1105) |
| Kentucky | Subs and suppliers without a direct contract must give the owner written notice within 75 days after last… | 6 months after last furnishing, filed with the county clerk, with a copy mailed to the owner within 7 days… | 12 months after the lien statement is filed (KRS 376.090) |
| Louisiana | Not generally required for subcontractors. Suppliers to subcontractors must send a notice of nonpayment to… | Generally 60 days after a notice of termination is filed, or after substantial completion or abandonment if… | Suit against the owner within 1 year after filing the statement of claim (R.S. 9:4823); a notice of pendency… |
| Maine | Not generally required. A claimant without a direct contract must give the owner a statutory notice on… | Subcontractors and suppliers must file a lien statement with the county registry of deeds within 90 days… | Court action within 120 days after last furnishing labor or materials (§3255) |
| Maryland | Subcontractors must give the owner written notice of intent to claim a lien within 120 days after doing the… | File a petition to establish the lien in circuit court within 180 days after the work is finished or… | 1 year from the day the petition to establish the lien was first filed (§9-109) |
| Massachusetts | Lower-tier subs and suppliers should send a notice of identification to the general contractor by certified… | Record a notice of contract by the earliest of 60 days after a notice of substantial completion, 90 days… | Sue within 90 days after filing the statement of account, and record an attested copy of the complaint… |
| Michigan | Subcontractors and suppliers must serve a notice of furnishing on the owner's designee and the general… | Record a claim of lien with the county register of deeds within 90 days after last furnishing labor or… | Action to enforce within 1 year after recording the claim of lien |
| Minnesota | Claimants without a direct contract with the owner must give a prelien notice within 45 days after first… | File the lien statement with the county recorder (or registrar of titles) and serve it on the owner within… | Suit within 1 year after the last item of work or materials |
| Mississippi | Generally, a claimant without a contract with the general contractor must give the general contractor… | Within 90 days after the claimant's last work or materials, filed with the county chancery clerk | Suit within 180 days after the lien is filed (can be cut to 90 days if the owner records a notice of contest) |
| Missouri | Original contractors must give the owner a written Notice to Owner before receiving payment. Subcontractors… | Generally within 6 months after the claimant last furnished labor or materials | Suit generally within 6 months after the lien is filed |
| Montana | Notice of right to claim a lien within 20 days of first furnishing (45 days with certain lender-funded… | Within 90 days after the claimant's final furnishing, or 90 days after the owner files a notice of completion | Generally within 2 years after the lien is filed |
| Nebraska | Not generally required. Notice of the right to assert a lien applies when the owner is a protected party… | Within 120 days after the claimant's final furnishing of services or materials | Lien is enforceable for 2 years after recording; an owner's written demand can force suit within 30 days |
| Nevada | Notice of right to lien to the owner and general contractor within 31 days of first furnishing, by anyone… | Generally within 90 days after the latest of completion of the work, last delivery or last performance; 40… | Suit within 6 months after recording (extendable by written agreement with the owner) |
| New Hampshire | Subcontractors and suppliers not in contract with the owner must give the owner written notice, ideally… | The lien lasts 120 days after the claimant last performs services or furnishes materials (RSA 447:9) and… | Within the same 120 days, by petition to the superior court to secure the lien by attachment |
| New Jersey | Not generally required on commercial projects; on residential projects a Notice of Unpaid Balance and Right… | Within 90 days after last furnishing labor or materials (residential: 120 days, after the arbitration step) | Within 1 year after last furnishing (not from the lien filing), or within 30 days of an owner's demand to sue |
| New Mexico | Required for claims over $5,000 by parties without a contract with the owner or prime, within 60 days after… | Within 90 days after completion of the building or improvement; an original contractor has 120 days after… | Within 2 years after the lien is filed (court action or binding arbitration) |
| New York | Not generally required | Within 8 months after completion of the contract or the claimant's last furnishing; 4 months for a… | Generally 1 year after the lien is filed, unless extended (a second extension requires a court order) |
| North Carolina | Where the owner has designated a lien agent (required for improvements costing $40,000 or more, with… | Within 120 days after the claimant's last furnishing of labor or materials at the site (G.S. 44A-12) | Within 180 days after last furnishing (G.S. 44A-13) |
| North Dakota | Written notice that a lien will be claimed must go to the owner by certified mail at least 10 days before… | Record with the county recorder within 90 days after the claimant's contribution is done (N.D.C.C. §35-27-13) | Within 3 years after recording, or within 30 days after an owner's written demand; written notice of intent… |
| Ohio | Subs and suppliers without a contract with the owner must serve a Notice of Furnishing within 21 days after… | Within 75 days after last furnishing on commercial projects; 60 days for one- and two-family dwellings and… | The lien lasts 6 years after the affidavit is filed (R.C. 1311.13), but if the owner serves a Notice to… |
| Oklahoma | Subcontractors and suppliers (not the original contractor) generally must send a pre-lien notice to the… | Generally within 90 days after last furnishing for subcontractors and suppliers (4 months for original… | Generally within 1 year after the lien is filed with the county clerk |
| Oregon | A notice of right to a lien to the owner is generally required from suppliers of materials, equipment or… | Generally within 75 days after the claimant's last furnishing or after completion of construction, whichever… | Generally within 120 days after the lien is filed, with a notice of intent to foreclose sent at least 10… |
| Pennsylvania | On projects of $1.5MM or more where the owner filed a Notice of Commencement in the State Construction… | Generally within 6 months after completion of the claimant's work | Generally within 2 years after the lien claim is filed |
| Rhode Island | Contractors hired directly by the owner (other than material suppliers) must give the owner a notice of… | Generally mail and record a notice of intention within 200 days after the work or materials were furnished | Generally file the complaint to enforce and a notice of lis pendens within 40 days of recording the notice… |
| South Carolina | Not generally required to preserve a lien, but if the owner or contractor files a Notice of Project… | Generally serve the owner and file a sworn statement of lien within 90 days after last furnishing | Generally start suit and file a notice of pending action within 6 months after last furnishing |
| South Dakota | Only when a Notice of Project Commencement has been filed and posted: subcontractors and suppliers to subs… | Generally within 120 days after the claimant's last furnishing | Generally within 6 years after the last item of the claim, but within 30 days if the owner or contractor… |
| Tennessee | Prime contractors on residential jobs give a notice to owner before starting. Remote contractors (no direct… | Generally within 90 days after the improvement is completed or abandoned; within 30 days if a notice of… | Remote contractors generally must sue within 90 days after recording the lien; parties in direct contract… |
| Texas | Subs and suppliers must send notice to the owner and original contractor for each unpaid month: by the 15th… | Commercial: lien affidavit by the 15th day of the 4th month after the claimant's last month of furnishing… | Generally within 1 year after the last day the claimant could file its lien affidavit, extendable by written… |
| Utah | Required for claimants: file a preliminary notice in the State Construction Registry within 20 days after… | Within 90 days after a notice of completion is filed, or within 180 days after final completion of the… | Suit within 180 days after the notice of lien is recorded, plus a lis pendens recorded with the county… |
| Vermont | Subs and suppliers without a direct contract with the owner claim a lien by giving written notice to the… | Lien notice filed with the town clerk within 180 days after payment for the last labor or materials became due | Suit commenced and the property attached within 180 days after filing (or after payment becomes due, if later) |
| Virginia | Not generally required; on 1 or 2 family residential jobs, notice to the mechanics lien agent named on the… | Memorandum of lien within 90 days after the last day of the month of last furnishing, and no later than 90… | Suit within 6 months after recording or 60 days after completion or termination of the project, whichever is… |
| Washington | Suppliers, equipment lessors and subs without a direct contract with the owner generally must give a notice… | Record the lien in the county where the property sits within 90 days after the claimant last furnished labor… | Suit within 8 months after recording, with the owner served within 90 days of filing |
| West Virginia | Not generally required; an optional notice to the owner under §38-2-20 is available | Generally within 100 days after the subcontract is completed or after the claimant last furnished materials… | Suit in circuit court within 6 months after the lien notice is filed (§38-2-34) |
| Wisconsin | Subcontractors and suppliers must serve written notice on the owner within 60 days after first furnishing… | Within 6 months after the claimant last furnished labor or materials, and at least 30 days after serving a… | Suit within 2 years after the lien claim is filed (§779.06(1)) |
| Wyoming | Required. Subcontractors and suppliers must send notice to the record owner within 30 days after first… | Subcontractors and suppliers generally have 120 days (prime contractors 150 days) after the earlier of last… | Suit within 180 days after the lien statement is filed (§29-2-109) |
Private prompt pay and public payment bonds
| State | Owner pays GC | GC pays sub | Late interest | Payment bond required |
|---|---|---|---|---|
| Alabama | As the contract says; if it is silent, 30 days after receipt of the pay request or invoice | As the contract says; if it is silent, 7 days after the contractor receives the owner's payment | 1% per month (12% a year) on late or wrongfully withheld amounts | Public works contracts of $50,000 or more |
| Alaska | n/a | n/a | n/a | Public building or public works contracts exceeding $100,000 |
| Arizona | Owner has 14 days to approve or deny a billing, then 7 days after approval to pay | 7 days after receipt of each payment | 1.5% per month on late or wrongfully withheld payments | Generally required on public works; state projects of $100,000 or more |
| Arkansas | n/a | n/a | n/a | Public construction contracts exceeding $50,000 |
| California | Within 30 days after a payment request, unless otherwise agreed in writing | Within 7 days after receiving a progress payment, unless otherwise agreed in writing | 2% per month penalty on late payments | Public works contracts over $25,000 |
| Colorado | n/a | n/a | n/a | Public works contracts over $50,000 (state projects over $150,000) |
| Connecticut | 30 days after a written payment request | 25 days after the contractor receives payment covering the sub's work | 1% per month, starting 10 days after the unpaid party sends notice | State and municipal public works contracts over $100,000 |
| Delaware | 30 days after the end of the billing period, for satisfactory work | 30 days, out of amounts paid to the contractor | Delaware legal rate, compounded each 30 days | Large public works contracts (the 100% bond also secures payment of subs and suppliers); the dollar line is… |
| District of Columbia | If the contract sets no dates, 15 days after the payment request, occupancy permit or owner possession… | 7 days after the contractor receives payment for the sub's work | 1.5% per month on undisputed late amounts, plus attorney fees to a prevailing claimant | District construction contracts over $25,000 |
| Florida | When payment is due under the contract and a written payment request (with required affidavits or waivers)… | Once the contractor has been paid for the sub's work and the sub's payment is due under the subcontract | Judgment rate under §55.03 plus 12% a year, starting the 14th day after payment is due | Required on public works generally; state contracts of $100,000 or less are exempt, and local governments… |
| Georgia | 15 days after receipt of a pay request | 10 days after the contractor receives payment | 1% per month, if the payer was notified of the rate with the pay request; contract terms can set a different… | Public works contracts over $250,000 (raised by HB 137, effective July 1, 2025) |
| Hawaii | n/a | 10 days after the later of a sub's invoice with required backup or the contractor's receipt of payment from… | 1.5% per month from the date payment is due | Construction contracts over $25,000 |
| Idaho | n/a | n/a | n/a | Public works contracts of $50,000 or more; payment bond of at least 85% of the contract amount |
| Illinois | 15 calendar days after the owner approves a payment application; it is deemed approved 25 days after receipt… | 15 calendar days after the contractor receives each payment | 10% per year on late amounts | Generally public works costing over $50,000; an amendment effective January 1, 2024 raised the threshold to… |
| Indiana | n/a | n/a | n/a | State public works contracts estimated over $200,000 require a 100% payment bond; below that the state may… |
| Iowa | n/a | n/a | n/a | Public improvement contracts of $25,000 or more (highway, bridge and culvert work excluded) |
| Kansas | 30 days after receipt of a timely, properly completed, undisputed payment request | 7 business days after the contractor receives payment | 18% per year on undisputed late amounts | Public contracts exceeding $100,000 |
| Kentucky | 30 business days after receipt of a timely, properly completed, undisputed payment request | 15 business days after the contractor receives payment | 12% per year, starting the 31st business day (owner) or 16th business day (contractor) | State construction contracts over $40,000; local public agency construction contracts over $100,000; payment… |
| Louisiana | Generally 35 days after a written payment request for properly performed work (if the project is… | 7 days after receipt of payment | 1.5% per month, with no cap, until paid | Contracts over $25,000 per project (over $250,000 in Ascension Parish); bond of at least 50% of the contract… |
| Maine | 20 days after the end of the billing period or 20 days after delivery of the invoice, whichever is later… | 7 days after receipt of payment or 7 days after receipt of the sub's invoice, whichever is later… | Interest at the rate in 14 M.R.S. §1602-C from the day after the due date, plus a 1% per month penalty on… | Public construction contracts over $125,000 (payment bond for the full contract amount) |
| Maryland | Undisputed amounts within 7 days after the payment date set in the contract; if the contract sets none… | Undisputed amounts within 7 days after the contractor receives each payment | The statute sets no rate; interest runs from the date a court finds the amount was due, and attorney fees… | Construction contracts above the small procurement amount: generally over $100,000 (over $200,000 for DGS… |
| Massachusetts | On projects with an original contract price of $3M or more (excluding 1 to 4 unit residential), the owner… | Each lower tier gets 7 more days to approve or reject, then pays within 45 days after approval | The statute sets no rate; contract terms or the general contract interest rate apply | Public construction contracts over $25,000; bond of at least 50% of the contract price |
| Michigan | n/a | n/a | n/a | Public construction contracts over $50,000 (performance and payment bonds) |
| Minnesota | Progress payments monthly based on approved estimates, unless the contract provides otherwise; retainage… | Within 10 days of receiving payment for undisputed work | 1.5% per month on undisputed amounts paid late ($10 monthly minimum on balances of $100 or more) | Public contracts at or above the formal bid threshold in §471.345, subd. 3 (contracts estimated over… |
| Mississippi | Progress payments due per the contract; interest starts if unpaid 30 days after the due date. Final payment… | Upon receipt of owner payment, in proportion to work completed; a penalty applies if unpaid within 15 days… | Owner to contractor: 1% per month. Contractor to sub: 0.5% per day penalty, capped at 15% of the balance. | Payment bond generally required; contracts under $25,000 paid in a lump sum at completion may skip the bond |
| Missouri | Per the contract's payment schedule; the statute sets no fixed number of days | Per the contract's payment schedule; the statute sets no fixed number of days | Court may award up to 1.5% per month from the date payment was due, plus attorney fees to the prevailing party | Public works contracts estimated to exceed $50,000 |
| Montana | Payment request deemed approved 21 days after receipt unless disapproved in writing; approved amount due… | Within 7 days after the contractor receives payment | 1.5% per month on payments more than 30 days late | Bond generally required for the full contract price; may be waived for projects under $50,000 ($7,500 for… |
| Nebraska | Within 30 days after receipt of a proper payment request; retainage released within 45 days after… | Within 10 days after the contractor receives each periodic or final payment | 1% per month on the unpaid balance from the day after the due date, once the paying party has been notified… | State projects over $15,000; county, city, school district and other local projects over $10,000 |
| Nevada | Per the written schedule, or within 21 days after a payment request if there is no schedule; final payment… | By the scheduled date or within 10 days after the contractor is paid, whichever is earlier (if no schedule… | The higher of the contract rate or the prime rate at the largest Nevada bank, plus 4% | Public contracts over $100,000 |
| New Hampshire | n/a | n/a | n/a | Contracts involving $75,000 for the state or $125,000 for a political subdivision |
| New Jersey | Within 30 days after the billing date in the contract; a payment request is deemed approved within 20 days… | Within 10 days after receipt of payment, unless the contract says otherwise | Prime rate plus 1%; prevailing party recovers reasonable costs and attorney fees | Payment and performance bond required on public works; the state may waive it on contracts of $200,000 or… |
| New Mexico | Progress payments within 21 days after receipt of a proper payment request; final payment within 10 days… | Within 7 days after receipt of payment | 1.5% per month; the court may award attorney fees | Construction contracts over $25,000; below that the agency may require bonds at its discretion |
| New York | Owner approves or disapproves an invoice within 12 business days, then pays within 30 days after approval | 7 days after the contractor receives good funds | 1% per month, or a higher contract rate | Payment bond generally required on state public improvement contracts; the agency may waive bonds on… |
| North Carolina | No statutory deadline; set by the contract | Within 7 days after the contractor or subcontractor receives periodic or final payment | 1% per month from the 8th day (G.S. 22C-5) | Required from each contractor with a contract over $50,000 when total construction contracts on the project… |
| North Dakota | n/a | n/a | n/a | Public improvement contracts over $100,000 |
| Ohio | No statutory deadline; set by the contract | Within 10 calendar days after the contractor receives payment from the owner, including final retainage | 18% per year on late payments to subs and suppliers | Not verified |
| Oklahoma | Within 28 calendar days after receipt of billing, when the contract does not set other terms | Within 10 calendar days of payment from the owner | n/a | Public contracts over $100,000 (raised from $50,000 effective November 1, 2022) |
| Oregon | Progress payments no later than 14 days after the owner receives the billing; final payment within 7 days… | Within 7 days after the original contractor receives payment | 1.5% per month on late payments | Public improvement contracts over $100,000 (over $50,000 for highway, bridge and other transportation… |
| Pennsylvania | Per the contract; if the contract is silent, 20 days after the end of the billing period or 20 days after… | 14 days after receipt of each progress or final payment, or 14 days after the sub's invoice, whichever is… | 1% per month on late payments, plus a further 1% per month penalty and attorney fees if payment was… | Public works contracts over $5,000 |
| Rhode Island | n/a | n/a | n/a | All public building construction, improvement or repair contracts; public road and bridge contracts over… |
| South Carolina | Undisputed amount of a pay request within 21 days of receipt | Within 7 days of receiving each periodic or final payment | 1% per month from the due date, but only if the payer was notified of the statute when payment was requested | Payment bonds are required on state construction contracts; the governmental body may waive them for… |
| South Dakota | n/a | n/a | n/a | Public improvement contracts generally, with surety at least equal to the contract price; may be waived when… |
| Tennessee | 30 days after a timely payment application (§66-34-202) | 30 days after the sub's timely payment application (§66-34-302); retainage passed down within 10 days after… | Contract rate, or 1.5% per month if none (§66-34-601) | Public contracts over $100,000 (bond of at least 25% of the contract price) |
| Texas | 35 days after the owner receives a written payment request | 7 days after the contractor receives the owner's payment | 1.5% per month starting the day after payment is due | Contracts over $25,000 (over $50,000 for municipalities) |
| Utah | Progress payments per contract; final payment and retention within 45 days after the later of the final… | Progress payments within 30 days after the contractor is paid; retention within 10 days | 1% per month on late payments; an added 2% per month for knowing, wrongful withholding of retention | No dollar threshold: construction contracts awarded under the Procurement Code require a 100% payment bond… |
| Vermont | 20 days after the end of the billing period or delivery of the invoice, whichever is later | 7 days after receipt of each progress or final payment, or after the sub's invoice, whichever is later | 12% per year; an added 1% per month on sums wrongfully withheld | Payment bond required on Agency of Transportation construction contracts; may be waived for contracts of… |
| Virginia | 60 days after receipt of an invoice for satisfactorily completed work; written notice of any withholding… | The earlier of 60 days after the sub's invoice or 7 days after the contractor is paid for that work… | Interest penalties as under Va. Code §2.2-4355 | Nontransportation construction contracts over $500,000; state-funded transportation projects over $350,000 |
| Washington | n/a | n/a | n/a | Bond required on public works contracts; on contracts of $150,000 or less the contractor may elect to have… |
| West Virginia | n/a | n/a | n/a | No dollar threshold in the statute: a bond is required on any contract to build, improve or repair a public… |
| Wisconsin | n/a | n/a | n/a | State contracts over $369,000 require a payment and performance bond ($148,000 to $369,000 unless a… |
| Wyoming | n/a | n/a | n/a | Public works contracts over $150,000 require a bond of at least 100% of the contract price; at $150,000 or… |
Federal jobs: the Miller Act
On federal construction contracts over The statute requires performance and payment bonds on federal construction contracts of more than $100,000; FAR 28.102-1 applies the inflation-adjusted threshold of more than $150,000. Contracts over $35,000 up to $150,000 use alternative payment protections chosen by the contracting officer., the prime contractor must post a payment bond (40 U.S.C. 3131-3134). Claim notice: 90 days: a second-tier claimant (one with a direct contract with a subcontractor but none with the prime contractor) must give the prime contractor written notice within 90 days after its last labor or materials, delivered by a method that provides third-party verification of delivery. First-tier subs and suppliers with a direct contract with the prime need no notice but must wait 90 days after last furnishing to sue.. Suit deadline: Suit must be filed within 1 year after the claimant's last labor or materials..
How this affects factoring your pay applications
- Funders usually want proof the work is approved: a signed pay application or the GC's written acknowledgment.
- Retainage is generally not advanced until it is released, so expect funding on the net billed amount.
- Conditional lien waivers tied to payment protect you; unconditional waivers signed before you are paid can give up rights a funder relies on.
- Pay-if-paid clauses shift the owner's credit risk to you, and funders price that in.
Questions people ask
Why does a factor care about mechanics lien deadlines?
A sub's lien or bond claim is what gets an unpaid invoice paid when the general contractor or owner stalls. A funder advancing against a pay application wants to know those rights are still alive, so it checks the notice and lien deadlines, the lien waivers you have signed, and whether the job is bonded.
Can construction subcontractors factor invoices?
Yes, though fewer funders do it, because of retainage, pay-when-paid clauses, change orders and lien waivers. Funders that specialize in construction advance on approved pay applications and often hold back a larger reserve. See our page on factoring for construction subcontractors.
What is a Little Miller Act?
A state law requiring payment bonds on public construction, modeled on the federal Miller Act (40 U.S.C. 3131-3134). Because you cannot lien public property, the bond is how subs and suppliers on public jobs get paid. Each state sets its own contract threshold and claim notice deadline.
How many states have private prompt pay laws?
We verified a private construction prompt payment rule in 36 of 51 jurisdictions. Where none applies, the subcontract's payment terms control, so read the pay-when-paid and pay-if-paid language closely.