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Service provided to the state of Alaska and they late paying

I have a friend who does business for the state of Alaska. the state has taken a lot more than 90 days in some cases to pay. Can she legally charge interest to the state on late payments? What recourse does the small business have against the State and its entities?

1 reply

Oct 12, 2017

Provided the work in question was related to a construction project, the party providing the labor/materials is protected by Alaska's prompt payment laws. If the party contracted directly with the state/public entity, payment from the state is due within 30 days after a request for payment is made; or, if the public entity used grant money, then payment is due within 21 days after the invoice, or 21 days after the public entity received the grant money (whichever is later).

For payments to parties contracting directly with the public entity, interest begins to accrue 21 days after payment is due, and interest accrues on late payments at 10.5% per year.

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