The Florida Prompt Payment Act: A Subcontractor's Guide to Getting Paid On Time
Under the Florida Prompt Payment Act (Fla. Stat. §§ 255.071–255.078 for public projects and §§ 715.12 for private projects), general contractors must pay subcontractors within 10 days of receiving payment from the owner on public projects, and within 10 days of the owner's payment on private projects. Subcontractors must submit a proper pay application to trigger the clock. If payment is late without a valid written dispute, the owner or GC owes interest at 2% per month on the unpaid balance, plus reasonable attorney's fees and court costs if you have to sue to collect. These rights apply to licensed subcontractors and material suppliers on both public and private construction projects in Florida.
What Is the Florida Prompt Payment Act and Who Does It Cover?
The Florida Prompt Payment Act is a set of state statutes that sets mandatory payment deadlines and financial penalties for late payment throughout the construction payment chain. It covers two separate tracks: public projects under Fla. Stat. §§ 255.071–255.078, and private projects under Fla. Stat. § 715.12. Licensed subcontractors, sub-subcontractors, and material suppliers working under a general contractor on Florida construction projects are protected by these statutes — whether the owner is a state agency, a municipality, or a private developer. Unlicensed contractors are not entitled to the same statutory protections, which is one more reason to keep your license current.
The statute applies regardless of project size. There is no minimum dollar threshold to qualify for prompt payment protections. If you have a written or oral contract for construction services in Florida, the Prompt Payment Act's timelines and penalty provisions apply.
What Are the Payment Deadlines Under the Florida Prompt Payment Act?
On public projects, the timeline under Fla. Stat. § 255.073 works like this:
- The public owner must pay the GC within 20 business days after receiving a proper invoice.
- The GC must pay subcontractors within 10 business days after receiving payment from the owner.
- Subcontractors must pay their sub-subcontractors and suppliers within 10 business days after they themselves receive payment.
On private projects under Fla. Stat. § 715.12, the deadlines differ slightly:
- The owner must pay the GC within 14 days after the date payment is due under the contract, or if no date is specified, within 14 days of the end of the billing period.
- The GC must pay subcontractors within 10 days after receiving payment from the owner.
- Sub-subcontractors and suppliers must be paid within 10 days of the tier above them receiving payment.
The 10-day pass-through deadline is the key number for most subcontractors. If your GC gets paid on a Friday and hasn't cut your check by the following Monday week, they are in violation of the statute.
What Happens If Payment Is Late?
If a GC misses the 10-day payment deadline without a valid written dispute, the Florida Prompt Payment Act imposes automatic financial penalties. Under Fla. Stat. § 255.073(4) for public projects and Fla. Stat. § 715.12(7) for private projects, the overdue amount accrues interest at 2% per month (approximately 24% per year). That interest runs from the date payment was due until the date it is actually made.
Beyond interest, if you are forced to file suit to recover the payment, you are entitled to recover reasonable attorney's fees and court costs. This is significant: it means a GC who refuses to pay knows they're on the hook for your lawyer's bill too. That shifts the negotiating leverage back toward you.
One important procedural note: the GC can stop the penalty clock by issuing a written notice of dispute within the payment period, specifying the reasons payment is being withheld. A vague verbal objection does not qualify. The dispute must be in writing, must identify the specific amount being disputed, and must explain why. If they don't do this, the interest clock keeps running.
According to Rabbet's 2024 Construction Payments Report, 82% of contractors face payment waits of over 30 days, up from 49% just two years earlier. In Florida's construction market, knowing you have a statutory 2% monthly interest penalty to invoke makes a significant difference when you're having that conversation with a slow-paying GC.
Does the Florida Prompt Payment Act Apply to Retainage?
Yes, and the rules are specific. Under Fla. Stat. § 255.078 (public projects) and Fla. Stat. § 715.12 (private projects), retainage held on Florida construction projects is capped and subject to mandatory release timelines.
Public projects:
- Retainage is capped at 10% until 50% project completion.
- After 50% completion, if the project is proceeding satisfactorily, the owner must reduce retainage to 5% or eliminate it entirely.
- Final retainage must be released within 20 business days after final acceptance of the project or final payment by the owner, whichever comes first.
Private projects:
- Retainage is capped at 10% of the contract price.
- Owners and GCs must release retainage within 14 days after the amount is due.
If retainage is withheld beyond these timeframes without a written dispute, the same 2% monthly interest penalty applies. A GC cannot sit on your retainage indefinitely just because the owner is dragging their feet on final acceptance — the GC's payment obligation to you is triggered by their receipt of payment, not by final project closeout.
How Does the Florida Notice to Owner Requirement Connect to Prompt Payment Rights?
The Florida Prompt Payment Act and the Florida Notice to Owner requirement are separate but related protections, and confusing them is a costly mistake. The Notice to Owner (NTO) under Fla. Stat. § 713.06 is a mechanics lien prerequisite — it protects your right to file a mechanics lien if you go unpaid. The Prompt Payment Act provides a direct payment remedy against the GC, with interest and attorney's fees, regardless of whether you filed a lien.
That said, serving a Notice to Owner strengthens your overall payment protection significantly. If the Prompt Payment Act remedy doesn't get you paid, your mechanics lien rights are the next line of defense. To preserve those lien rights in Florida, subcontractors who do not have a direct contract with the owner must serve a Notice to Owner within 45 days of first furnishing labor or materials.
Missing the 45-day NTO deadline eliminates your mechanics lien rights — period. The Prompt Payment Act claim is still available, but a lien gives you a security interest in the property itself, which is often the most powerful leverage available.
What Steps Do You Need to Take to Enforce Your Prompt Payment Rights?
Enforcing your rights under the Florida Prompt Payment Act requires documentation and follow-through. Here is the practical sequence:
1. Submit a proper pay application. The payment clock doesn't start until you submit a "proper invoice" — meaning it includes the required information: project name, contract amount, amount due, period of performance, and any required backup documentation specified in the contract. A sloppy pay app can reset the clock.
2. Track the 10-day deadline. Mark your calendar the day your GC receives payment. Ten business days later, payment is due to you. Don't wait to chase it.
3. Send a written demand if the deadline passes. If day 11 arrives without a check, send a written demand via certified mail. State the amount owed, the payment due date, the statutory basis (Fla. Stat. § 715.12 for private or § 255.073 for public), and that interest is accruing at 2% per month.
4. Check for a written dispute notice. If the GC responds with a dispute, it must be in writing and specific. A general "we're withholding payment" message doesn't cut it under the statute.
5. Consider filing a mechanics lien in parallel. If payment isn't resolved quickly, and you timely served your Notice to Owner, file your mechanics lien. On private projects, you have 90 days from the last day you furnished labor or materials to file.
6. Consult a Florida construction attorney. If the GC ignores your demand, a Florida construction attorney can evaluate whether to file a civil action to recover the unpaid amount, interest, and attorney's fees.
Florida lien deadline reference
What Can Disqualify You From Prompt Payment Act Protections?
There are several situations where you may lose access to these protections or weaken your position:
- Failing to submit a compliant invoice. If your pay application is missing required documentation or doesn't match the contract requirements, the GC can legitimately withhold payment.
- Being unlicensed. Florida courts have consistently held that unlicensed contractors cannot enforce construction contracts or lien rights.
- Signing away your rights by contract. Some GC contracts include "pay-if-paid" clauses that condition your payment on the owner paying the GC. Florida courts have enforced these clauses in some circumstances — read your contract before you sign.
- Missing the NTO deadline. Again, this doesn't eliminate your Prompt Payment Act claim, but it eliminates your mechanics lien backstop.
According to NetSuite's construction payment management research, 95% of general contractors and 75% of subcontractors report frequently floating payments while awaiting developer disbursements. Knowing your statutory rights means you're not the one indefinitely absorbing that float.
Frequently Asked Questions
Does the Florida Prompt Payment Act apply to both public and private construction projects?
Yes. Public projects are governed by Fla. Stat. §§ 255.071–255.078. Private projects are governed by Fla. Stat. § 715.12. The core payment timelines differ slightly — public projects use business days and have a 20-day owner-to-GC window; private projects use calendar days and a 14-day window — but both tracks provide subcontractors with interest penalties and attorney's fees for late payment.
What is the interest rate for late payments under the Florida Prompt Payment Act?
The penalty interest rate is 2% per month on the unpaid balance, under both Fla. Stat. § 255.073(4) and Fla. Stat. § 715.12(7). That works out to approximately 24% per year. Interest begins accruing the day after the payment deadline passes and continues until the date actual payment is made.
Can a GC legally withhold payment from a subcontractor in Florida?
A GC can withhold payment if they issue a timely, written notice of dispute that identifies the specific amount disputed and the reason for withholding it. A verbal objection or a vague written statement does not satisfy the statute. If the written dispute notice is not issued within the required payment period, interest starts accruing immediately on the unpaid amount.
Do I need to serve a Notice to Owner to use the Prompt Payment Act?
No. The Prompt Payment Act is a separate remedy from the mechanics lien process. You do not need to have served a Notice to Owner to invoke prompt payment penalties and interest. However, the Notice to Owner is required to preserve your mechanics lien rights — and having both protections in place gives you far more leverage.
How long do I have to file a mechanics lien in Florida?
On private projects, subcontractors have 90 days from the last day they furnished labor, materials, or services to file a mechanics lien under Fla. Stat. § 713.08. This is separate from the Prompt Payment Act but works in tandem with it. Missing this deadline eliminates your lien rights entirely.
What counts as a "proper invoice" to start the payment clock?
A proper invoice typically must include: the project name and address, a description of work performed, the contract amount, the amount being invoiced, the billing period, and any supporting documentation required by your contract (such as certified payroll, lien waivers, or material receipts). Review your subcontract carefully — the GC's contract usually spells out their specific requirements.
Are sub-subcontractors protected by the Florida Prompt Payment Act?
Yes. The statute extends protections down the entire payment chain. Sub-subcontractors and material suppliers have the same 10-day payment rights once the tier above them receives payment. They are also entitled to the 2% monthly interest penalty and attorney's fees if payment is late without a valid written dispute.
Does the Florida Prompt Payment Act cover retainage?
Yes. Retainage is subject to the same prompt payment rules once it becomes due. On public projects, retainage must be released within 20 business days of final acceptance. On private projects, it must be released within 14 days of when it is due. Late retainage accrues the same 2% monthly interest as regular progress payments.
Protect Your Lien Rights Today
The Florida Prompt Payment Act gives you real teeth — 2% monthly interest, attorney's fees, and a clear statutory framework for demanding what you're owed. But those rights only work if you've also protected your mechanics lien rights with a timely Notice to Owner. Miss that 45-day NTO window and your backstop disappears.
LienFlash files your Florida Notice to Owner in under 2 minutes — attorney-reviewed forms, sent via USPS Certified Mail with a Certificate of Mailing PDF for your records, at $24.99 per notice. If you're running multiple jobs, the Pro plan covers 3 notices per month plus deadline alerts for $49/month.
Don't wait until a GC goes dark to start thinking about documentation. File your NTO on day one, track your payment deadlines, and use the statutes Florida already gave you.