Construction Law

North Carolina Prompt Pay Act Guidance

The North Carolina Prompt Pay Act was created to establish specific timelines in which payments must be released on completed public and private construction projects. The act, which has two sets of prompt payment laws (one for public projects and one for private) was intended to protect contractors from being delayed payment for completed projects. If a contractor is not paid in a timely manner as stipulated by the law, the contractor can legally impose interest on the funds until they are paid. 

Although this act is positive for contractors, there are instances in which a Charlotte contractor attorney may need to assist contractors or subcontractors with recovering payments, contesting disputes that delay payment, and considering potential litigation. 

Recovering Payments

A Charlotte contractor lawyer may be necessary if payment is not received within the allotted time frame. For public contracts, the time limit is generally 45 days after project completion. Although the set limit for private projects often relates to their contract with the owner, there are limits for subcontractors and others throughout the chain, which is typically seven days from the date the general contractor receives payment. 

If you are not paid in a timely manner, legal counsel can assist you in drafting the necessary documentation to recover payment, including a demand letter. If payment is still withheld, the attorney will discuss the next steps and will draft necessary letters, claims, or notices. 

Contesting Disputes Resulting in Delayed Payments

There are specific instances when payment may be withheld, despite the act’s specifications. One of those instances is when there is a dispute on the quality of the work. Contractors who stand behind their work should contact an attorney in these cases who can discuss what steps to take next. 

In some cases, a Charlotte construction litigation lawyer may begin the process of litigation to protect your right to compensation. They will also discuss the reasonable interest rate that you may charge during litigation, which is protected by the North Carolina Prompt Pay Act. Cotney Attorneys & Consultants can discuss your rights and the next steps if you are a contractor who has not been paid promptly. 

At Cotney Attorneys & Consultants, we know that this is a difficult time for contractors across the nation. If you are owed payment, take action and consult a knowledgeable and experienced construction attorney who can assist you with all of your legal needs.  

If you would like to speak with a Charlotte construction litigation attorney, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.