Florida Prompt Payment Act for Construction

Florida's Prompt Payment Act establishes mandatory payment timelines and interest penalties for construction contracts, protecting contractors, subcontractors, and suppliers from delayed or withheld compensation. This page covers the statutory framework under Florida Statutes Chapter 218 (for public projects) and Chapter 713 (related lien protections), how payment obligations flow through the contracting chain, scenarios where disputes commonly arise, and the boundaries separating public from private project coverage.

Definition and scope

The Florida Prompt Payment Act is codified in two primary locations: Florida Statutes § 218.70–218.80 (the Local Government Prompt Payment Act and related provisions for public construction) and Florida Statutes § 255.073–255.078 (State Agency Prompt Payment for public contracts). Private construction projects follow a parallel framework under Florida Statutes § 715.12, which governs private owner-to-contractor and downstream payment obligations.

The Act covers any person or entity in the construction payment chain: general contractors, subcontractors, sub-subcontractors, and material suppliers. It applies to new construction, renovation, and repair work. The statutory interest rate for late payments under § 218.735 is set at 1% per month on the unpaid balance, compounding monthly.

Scope limitations: The Florida Prompt Payment Act does not apply to federal construction projects, which are governed by the federal Miller Act (40 U.S.C. § 3131 et seq.) and federal contracting regulations. It does not address professional design services governed separately under Chapter 287, Florida Statutes. Disputes arising on projects outside Florida's geographic jurisdiction fall outside this statute entirely. The Act also does not eliminate the need for proper lien filing under the Florida Construction Lien Law or compliance with Florida construction bonding requirements.

How it works

Payment obligations under the Act operate in sequential stages based on contract tier and project type.

Public projects (§ 255.073–255.078):

  1. 073).
  2. Contractor-to-subcontractor payment: The prime contractor must pay each subcontractor within 10 days after receiving payment from the owner.
  3. Subcontractor-to-sub-subcontractor payment: Payments must continue flowing down the chain within 7 days of each tier receiving payment.
    4.
  4. Interest accrual: Undisputed amounts unpaid beyond the statutory deadline accrue interest at 1% per month automatically — no written demand is required to trigger accrual.

Private projects (§ 715.12):

For private construction, payment timelines are largely contract-driven, but § 715.12 establishes that if a contract does not specify payment terms, payment is due within 25 days of invoice submission. Downstream contractors must pay within 10 days of receiving payment. Disputed invoices require written notice within 14 days.

The interaction between prompt payment obligations and Florida commercial construction contracts is significant: contract terms that attempt to waive or override statutory prompt payment protections are generally unenforceable under Florida law.

Common scenarios

Scenario 1: Disputed work quality on a public project
A general contractor invoices a county government for completed concrete work. The county disputes 15% of the invoice value, citing curing defects. Failure to issue timely notice forfeits the county's right to withhold that amount.

Scenario 2: "Pay-when-paid" vs. "pay-if-paid" clauses
A subcontractor's contract contains a "pay-when-paid" clause. Under Florida law, such clauses create a timing mechanism — not a condition — meaning the general contractor's obligation to pay the subcontractor exists regardless of whether the owner has paid the general contractor, subject to reasonable time passage. This differs from a true "pay-if-paid" clause, which Florida courts have narrowly enforced only when the language unambiguously shifts the risk of owner nonpayment to the subcontractor.

Scenario 3: Material supplier on a private project
A lumber supplier delivers materials to a private commercial job site. The general contractor receives payment from the owner but does not pay the supplier within 10 days as required by § 715.12. The supplier's remedies include statutory interest at 1% per month plus a right to suspend deliveries. The supplier should also review filing deadlines under the Florida Notice to Owner requirements to preserve lien rights independently.

Prompt payment issues frequently intersect with Florida construction dispute resolution processes, particularly on Florida public construction projects.

Decision boundaries

Public vs. private project distinction:
The threshold question is always project ownership. Projects owned by state agencies, counties, municipalities, or special districts fall under Chapter 218 and 255. Privately owned projects — including privately financed mixed-use developments — fall under § 715.12. The payment timelines, notice requirements, and enforcement mechanisms differ materially between these two tracks.

Contractor license standing:
A contractor without a valid license under Florida construction licensing requirements may face complications asserting prompt payment rights, as unlicensed work creates contract validity issues under Chapter 489, Florida Statutes.

Retainage rules:
Retainage on public contracts is capped at 10% until 50% project completion, after which retainage may be reduced (Florida Statutes § 255.078). Private projects follow contractual retainage terms absent specific statutory override.

Relationship to lien rights:
Prompt payment rights and lien rights are parallel, not identical. A contractor who loses lien rights through missed deadlines still retains prompt payment remedies, but loses the security interest in the property.

References

📜 13 regulatory citations referenced  ·  ✅ Citations verified Feb 25, 2026  ·  View update log

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