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How long does a contractor have to submit an invoice

MassachusettsPrompt PaymentRecovery OptionsSlow Payment

Contractor hires a sub-cotractor to do work for a homeowner. How long does the contractor have to submit sub-contractor's invoice to homeowner ? Thanks !

20 replies

Nov 22, 2019
Ultimately, the project should be billed as set out under the contract. So, if the contract has specific billing terms for when the contractor should bill the owner, then that should be followed. Further, if there are billing terms in the subcontract, then those should be followed as well. While Massachusetts has prompt payment laws on the books dictating when payments should be made, those payment timeframes are ultimately based on when invoices are approved and when payments are made. So, a contractor must approve or deny an invoice within 22 days - but the law is silent as to when the contractor must bill their customer.

How to speed up payments from a contractor when they're slow-paying

Slow payment is a problem in the construction industry, but subcontractors have a number of tools at their disposal to force payment. We'll quickly discuss some of these options below, along with links to resources with more information.

Invoice reminders and demand letters

Sending a simple invoice reminder can help to get paid without stirring up a payment dispute. Sometimes, a little nudge will be enough to convince a customer to make payment. Escalating things a bit more - by sending a document like a payment demand letter - may be helpful, too. Demand letters let customers know that you're serious about getting paid and willing to do what's necessary in order to get paid.

Notices of Intent to Lien

If payment issues persist, then sending a document like a Notice of Intent to Lien can force a customer to make payment. It's usually not a good idea to jump the gun and send one before it becomes necessary. But, if payment is becoming a serious problem, a Notice of Intent to Lien can act like a warning shot before further action becomes necessary. Plus, by sending the document to both the customer and the project owner, a claimant can ensure everyone's aware of the payment status on the project and can put additional pressure on the contractor to pay what's owed. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Pursuing a mechanics lien

Mechanics liens are the nuclear option, and they probably should come into play unless there's a serious payment dispute and the deadline for filing a lien is getting close. Still - it's a good idea for a lien claimant to understand their lien rights and deadlines and to be prepared, if push comes to shove. More on Massachusetts lien claims here: - Massachusetts Mechanics Lien Guide and FAQs - How to File a Massachusetts Mechanics Lien – A Practical Guide
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Dec 3, 2019
There is no set amount of time for a GC to submit an invoice from a subcontractor.  You would have to look at the contract and see if it addresses that situation. Feel free to call me.  
Sincerely,

 Andrea

Goldman Law Group 60 Austin Street, Suite 210                                                 Newton, MA 02460                                                                  T: 617-953-3760  F: 617-321-4191   agoldman@goldmanlg.com www.GoldmanLG.com “Massachusetts Builders Blog” www.buildingconfidence-llc.blogspot.com "Home Contractor vs. Homeowner Blog"  www.andreagoldmanlaw.blogspot.com
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Jul 25, 2022

According to federal law, prime contractors must receive progress payments within 14 days of submitting an accurate invoice. The payment must be made within 30 days of the invoice submission if it is the last one for a project. After that, a subcontractor must be paid by the prime contractor within seven days. flixdle  

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Jul 25, 2022

According to federal law, prime contractors must receive progress payments within 14 days of submitting an accurate invoice. The payment must be made within 30 days of the invoice submission if it is the last one for a project. After that, a subcontractor must be paid by the prime contractor within seven days. flixdle  

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Jul 25, 2022

Due to my knowledge, prime contractors must recive progress payments within 14 days of submitting an accurates invoice. flixdle  

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