New Jersey prompt payment

Who and what this applies to

Public and private improvement contracts governed by N.J.S.A. 2A:30A-2.

Thresholds and scope

Rules require contract performance and approval; some downstream timing can be changed in writing.

The rules

• Owners pay approved/certified periodic, final and retention billings within 30 calendar days of the billing date. Approval is deemed after 20 days from receipt absent a timely written amount/reason for withholding. Source
• Where disclosed in bid/contract documents, public bodies requiring a governing-body vote can approve at the next scheduled meeting and pay in the subsequent payment cycle. Source
• Unless otherwise agreed in writing, accepted compliant subcontract/subsubcontract work is paid within ten calendar days after receipt of the corresponding payment; ongoing partial payments also require satisfactory performance. Source
• Late sums accrue prime-rate-plus-1% interest, subject to the specified federally funded transportation exception. Source

Primary sources

• N.J.S.A. 2A:30A-2(a)
• N.J.S.A. 2A:30A-2(b)
• N.J.S.A. 2A:30A-2(c)

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

Back to New Jersey contractor law · Prompt Payment topic guide.