Ohio’s Prompt Payment Act requires that a contractor who is paid by an owner must pay the subcontractor its share within ten (10) calendar days of receipt. Similarly, a subcontractor who is paid must pay its sub-subcontractor or supplier within ten (10) calendar days of receipt. Failure to do so results in the imposition of 18% interest; and reasonable attorney’s fees if unpaid for thirty (30) days.
The Act applies to all Ohio commercial construction projects – whether public or private – and cannot be waived or altered by contract language.
Prompt Pay Act Still Has Teeth
We helped negotiate, draft and pass Ohio’s Prompt Payment Act (R.C. 4113.61) in the early 1990s. It became a model for many other states.
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First Prompt Payment Case Tried to Jury Verdict
We used our experience from having drafted Ohio's Prompt Payment Act to try the first prompt pay case to jury verdict.
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ASA's Prompt Payment in the 50 States
Many states require prompt pay to contractors and subcontractors regardless of how the contract reads. Learn when payments must be made to avoid interest or legal fees.
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