North Dakota Prompt Payment Requirements
- Private Jobs
- Public Jobs
- Top Links
Prime Contractors
Not specified in state statutes
Subcontractors
Not specified in state statutes
Suppliers
Not specified in state statutes
Interest & Fees
Not specified in state statutes
Prime Contractors
For Prime (General) Contractors, payment due within 45 days from invoice. Can be modified by contract.
Subcontractors
For Subcontractors, payment due within 45 days from payment received from above.
Suppliers
For Suppliers, payment due within 45 days from payment received from above.
Interest & Fees
Interest at 1.75% month, may be modified by contract.
Prompt payment laws are a set of rules that regulate the acceptable amount of time in which payments must be made to contractors and subs. This is to ensure that everyone on a construction project is paid in a timely fashion. These statutes provide a framework for the timing of payments to ensure cash flow and working capital.
Projects Covered by Prompt Payment in North Dakota
The prompt payment laws in North Dakota only regulate public works projects within the state. These can be found in N.D. Cent. Code §13-01.1-01 et seq. There are no provisions covering payments on private projects, those will be regulated by the terms of the contract.
Payment Deadlines for Public Projects
Payments made from the public entity to the prime contractor will be determined by the contract terms. However, if the contract is silent, then the prompt pay deadlines are enforced, which requires payments to be made to the prime contractor within 45 days of receipt of a request for payment. As for payments to subcontractors and suppliers down the payment chain, payments must be made within 45 days of the higher-tiered party receiving payment.
Penalties for Late Payment on Public Projects
If payment is either late or wrongfully withheld, the unpaid balance will be subject to interest penalties. Interest will accrue at the rate specified in the contract. If there is no interest rate provision, interest will accrue at 1.75% per month until payment is made. The interest will be compounded every 45 days until the payment is made. Meaning at the end of each delinquent 45-day period the interest accrued will be added to the principal and begin accruing interest on the increased amount on the following 45-day period.
