Maine Prompt Payment Requirements
- Private Jobs
- Public Jobs
Prime Contractors
According to Maine's prompt payment laws, the project owner must pay the prime contractor by the later of 20 days from delivery of invoice, or 20 days from the end of the "billing period." This may be modified by agreement.
Subcontractors
Maine requires payment from the hiring party to subcontractors within 7 days of the hiring party's receipt of invoice; or the hiring party's receipt of payment from above, whichever is later. This deadline may be modified by contract.
Suppliers
Payment is due to material suppliers in Maine by the later of 7 days from receipt of invoice or receipt of payment from above. This deadline can be modified by contract.
Interest & Fees
Maine assesses an interest penalty on late payments at the statutory rate of 1% per month. Attorney fees may be awarded to the "substantially" prevailing party in a prompt payment claim.
Prime Contractors
According to Maine's prompt payment laws, the public entity must pay the prime contractor by the later of 20 days from delivery of invoice, or 20 days from the end of the "billing period." This may be modified by agreement.
Subcontractors
On public projects, Maine requires payment from the hiring party to subcontractors within 7 days of: the hiring party's receipt of invoice; or the hiring party's receipt of payment from above. This deadline may be modified by contract.
Suppliers
Payment on public projects is due to material suppliers in Maine by the later of 7 days from receipt of invoice or receipt of payment from above. This deadline can be modified by contract.
Interest & Fees
Maine assesses an interest penalty on late payments at the statutory rate of 1% per month. Attorney fees may be awarded to the "substantially" prevailing party in a prompt payment claim.
Maine’s prompt payment laws regulate the acceptable amount of time in which payments must be made to contractors and subs on both public and private construction projects. This is to ensure that everyone on the job is paid in a timely fashion. Maine’s statutes provide a framework for the timing of payments to ensure cash flow and working capital.
Projects Covered by Prompt Payment in Maine
The prompt payment laws in Maine apply to both private and public construction projects. All construction projects within the state, with the exception of Department of Transportation projects, are regulated under Maine Revised Statutes:
- Chapter 201-A: Construction Contracts (Title 10 §§1111 et seq.)
- Chapter 144: Payment of Invoices Received from Business Concerns (Title 5 §§1551 et seq.)
- Read the full text of Maine’s prompt payment statutes
Maine Prompt Payment Deadlines
After a prime contractor has submitted a proper request for progress or final payment, a project owner in Maine will have 20 days from either receipt of the request, or the end of the billing period, whichever is later.
Once the higher-tiered party has received payment, they must pay their subcontractors or suppliers within 7 days of payment receipt, or receipt of a request for payment, whichever is later.
Maine’s prompt payment deadlines may be modified by the contract between the parties.
Penalties for Late Payment
The prompt payment statutes in Maine provide a list of reasons that payment can be properly withheld. However, if none of these exist, and payment is either late or wrongfully withheld, there will be an interest penalty imposed on the unpaid funds. The rate of interest will be either the rate stipulated in the contract, or the statutory judgement rate, whichever is greater.
The judgement rate is the one-year US Treasury Bill rate, plus 6%. Not only that, but if the dispute goes to court or arbitration, the court can award an additional 1% penalty per month on all payments wrongfully withheld. And lastly, the substantially prevailing party will be awarded costs and reasonable attorney fees as well.
