North Carolina prompt payment

Prompt Payment in North Carolina — Sources checked

Who and what this applies to

Covered public construction; excludes DOT contracts under section 136-28.1.

Thresholds and scope

Final owner payment: 45 days; downstream: seven days after receipt.

The rules

  • Final payment runs from earliest acceptance, completion certification or beneficial occupancy/use. Late interest is 1% monthly or fraction, unless a lower rate is agreed; contractor-delay and conditional-acceptance withholding exceptions apply. Source
  • Prime contractors pass periodic/final payments within seven days; statutory grounds permit withholding. 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.

Back to North Carolina contractor law · Prompt Payment topic guide.

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