South Dakota prompt payment

Who and what this applies to

Contracts between businesses and public agencies, including state entities, counties, municipalities and public school districts; related subcontractor/supplier payments.

Thresholds and scope

Public-agency scope under chapter 5-26; this record does not assert private-owner construction deadlines.

The rules

• The agency pays on the contract date, or, absent a specified date, within 45 days after receipt and written acceptance of property/services and receipt of the invoice. Source
• A proper invoice unpaid within 45 days accrues interest beginning on day 30 after receipt of property/services and invoice, at Category B or the contract rate. A qualifying dispute requires written notice with reasons within 30 days. Source
• After agency payment, the business must pay its subcontractor/supplier within 30 days once contract/delivery terms are satisfied; statutory interest begins on day 31, unless the parties' contract provides otherwise. Source
• Category B interest is 10% annually. Source

Deadlines

Agency default: 45 days after the statutory receipt/acceptance conditions. Downstream: 30 days after agency payment. Dispute notice: 30 days.

Primary sources

• 5-26.html?all=true
• 54-3-16.html

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

Back to South Dakota contractor law · Prompt Payment topic guide.