The contract was governed by Mississippi law however, the construction was done in Georgia.
1 reply
Mar 6, 2020
The prompt payment laws of the state where the work was performed should generally apply, regardless of what state's laws apply to the contract itself. This is because prompt payment rights aren't born out of the contract - rather, they arise automatically when work is performed in Georgia.
However, if the contract sets different rates of interest, payment periods, or other payment terms - then the rules created by the contract will apply, under section 13-11-7 of Georgia's prompt payment statute. This doesn't mean that another state's prompt payment laws will apply, though.
For more information on Georgia's prompt payment laws: Georgia Prompt Payment Guide and FAQs.