Minnesota prompt payment

Who and what this applies to

Downstream payment for building/construction contracts under section 337.10 subdivision 3.

Thresholds and scope

The rule addresses payment received for undisputed services.

The rules

• The prime and every subcontractor must pay the sub/material supplier within ten days after receipt of the corresponding payment for undisputed services. Source
• Late undisputed sums carry 1.5% monthly interest, with a $10 monthly minimum only for balances of $100 or more; the actual penalty applies below $100. Source
• The section allows work suspension for nonreceipt of an undisputed payment within the stated ten-day period and awards costs, disbursements and attorney fees to a party prevailing in an interest-penalty collection action. Source

Primary sources

• Minn. Stat. §337.10 subd.3

Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.

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