From bid to final payment: the six checks every contractor should run on a new project
Most payment problems on a construction job are set in motion before the first invoice is ever sent — at bid time, when the wrong license is assumed, or when nobody wrote down which deadline applies. This is a practical sequence of six checks, each tied to the specific state and project type, with the primary source linked where a rule is stated.
1. Contractor licensing, before you bid
Licensing is state-specific, and "no state license exists" is itself a fact you have to verify rather than assume. For example, Nebraska requires registration before a contractor performs construction work, with a $5,000-per-year threshold that exempts small operations (Neb. Rev. Stat. § 48-2104). Other states license only specific trades, and some leave general contracting to local governments. Check the project state's hub before you commit to a bid.
2. Write the payment timeline down, with dates
A payment log that only records "invoiced" and "paid" misses the deadline that matters. Record the contract date, the date work is furnished, when each payment request is submitted, when payment is due under the contract or statute, and when you actually receive it. The point of the log is to make a late payment provable later — including the interest clock some states start on unpaid balances.
3. Retainage is a cash-flow plan, not an afterthought
Retainage caps and release triggers are set by statute and vary by state and project tier. In California, for covered private contracts entered into on or after January 1, 2026, retention generally may not exceed 5 percent of the payment, subject to exceptions for a bid-time performance-and-payment-bond demand followed by failure to supply qualifying bonds, and non-mixed-use residential projects of four stories or fewer (California retainage guide · Cal. Civ. Code § 8811). Do not import that number to another state — verify the cap and the release trigger for your project.
4. A lien on private property is not the same as a claim on a public job
On private work, unpaid contractors and suppliers may pursue a mechanic's lien against the improved property, subject to notice and filing deadlines. On public work, you generally cannot lien public property — the remedy is a payment-bond claim against the contractor's bond, with its own notice deadlines. The two paths are not interchangeable, and the deadlines run independently. Identify public versus private before you decide which clock to track.
5. Wage determination and payroll checks
Wage obligations follow the funding program and the project, not a simple public-versus-private split. The federal Davis-Bacon Act applies to covered prime contracts for federal public buildings or public works over $2,000; separate Related Acts can extend its labor standards to some federally assisted construction, depending on the statute authorizing the assistance and the project — federal assistance alone does not establish coverage (Davis-Bacon guide). The correct wage determination is found on SAM.gov. State prevailing-wage coverage is program-specific, so check the accepted page for the project's state (prevailing wage overview). Before you sign a public contract, confirm which wage schedule applies and keep certified payroll records to match.
6. Choose the correct state and project tier first
Every rule above changes with two facts: the state where the work is performed, and your tier in the payment chain (prime contractor, subcontractor, or supplier). A "one-size" answer is the fastest way to get a deadline wrong. Start from the state hub and topic page, read the verified rule and its citation, and only then apply it to your role and project.
Keep the source and the working tool together
The original California and Florida packs include a printable source-linked cheat sheet, an offline date calculator, the seven-template library, and an official-form guide (16 files). The other 48 state packs include a source-linked research snapshot plus an editable project-intake form, a payment log, and a source-review worksheet (5 files). Choose the pack that matches the contents you need. The public topic summaries on this site remain free; the pack is the offline, source-linked edition. Confirm deadlines with a lawyer licensed in the project state.
Choose a $29 state pack · See the CA/FL template library · Find construction counsel