Kentucky prompt payment
Prompt Payment in Kentucky — Sources checked
Who and what this applies to
Covered public and private construction under KRS 371.400–.425; residential construction is excluded. Section 371.425 excludes the specified USDA Rural Utilities Service borrower/funding projects and KRS chapter 278 facilities. The act generally applies to contracts entered after June 26, 2007; for contracts entered on or after June 27, 2025, conflicting KRS 367.620–.628 provisions control.
The rules
- For a timely, complete and undisputed request, the owner generally pays within 30 business days. An unpaid contractor gives the certified-mail notice described in §371.405 on the 25th business day to invoke the specified interest process; the section provides 12% annual interest beginning on the 31st business day. Source
- The designated postsecondary and board-of-education contracts have a 45-business-day owner period and the section’s associated approval and interest provisions. Source
- Contractors and successive subcontractors pay the attributable undisputed amount within 15 business days after receipt of the corresponding payment, provided a timely, complete payment request has been submitted. The amended subsection specifies 12% annual interest from the 16th business day for noncompliant late payment. Source
Primary sources
Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.
Not legal advice. This is general legal information. Laws and project facts differ; confirm the applicable requirements for your project.
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