Mississippi prompt payment

Who and what this applies to

Nonpublic construction payments under Mississippi sections 87-7-3 and 87-7-5.

Thresholds and scope

Contractual due dates are distinct from the late-interest and downstream-penalty triggers; section 87-7-5 excludes single-family dwelling construction.

The rules

• Progress payments are payable when the contract makes them due. If unpaid for 30 calendar days thereafter, they carry 1% monthly interest from the contractual due date. Source
• Final payment is tied to the earliest specified completion/substantial-completion, beneficial-use or architect/engineer-certification event, with the ongoing-occupancy renovation exception and written surety consent requirement. After 30 days unpaid, 1% monthly interest runs from the triggering date. Source
• On receipt, the contractor distributes the payment proportionately to subs/suppliers; reduced receipts are distributed pro rata. Without reasonable cause, delay beyond 15 days triggers 0.5% daily penalty capped at 15%; section 87-7-5 does not apply to single-family construction. Source

Primary sources

• 2006 Miss. Laws ch.330 §1; Miss. Code §87-7-3(a)
• Miss. Code §87-7-3(b)
• Miss. Code §87-7-5

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

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