Arkansas Prompt Payment Guide and FAQs

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Arkansas Prompt Payment Overview

Arkansas Prompt Payment Requirements


  • Private Jobs
  • Public Jobs
  • Top Links
NO
DAYS
Prime Contractors

Not specified in state statutes


NO
DAYS
Subcontractors

Not specified in state statutes


NO
DAYS
Suppliers

Not specified in state statutes


NO
FEES
Interest & Fees

Not specified in state statutes

5
DAYS
Prime Contractors

For Prime (General) Contractors, progress payments due within 5 days of properly prepared request for payment. Final Payment due within 90 days of request for payment.


NO
DAYS
Subcontractors

Not specified in state statutes


NO
DAYS
Suppliers

Not specified in state statutes


10%
/ YEAR
Interest & Fees

Interest at 10% year

Arkansas does not have statute that explicitly addresses prompt payment for private projects. It does address prompt payment for public projects.

Arkansas Prompt Payment Frequently Asked Questions

Arkansas’s prompt payment statutes set forth specific timeframes for when general contractors, subcontractors, suppliers, and others involved with a public construction project must be paid. This page provides an overview of these regulations and addresses frequently asked questions related to the Arkansas prompt payment laws.

Arkansas Prompt Payment Private Projects FAQs

Arkansas does not have statute that explicitly addresses Prompt Payment for Private Projects?

Visit zlien‘s Arkansas Mechanics Lien Resources for more information about payment in Alaska.

Arkansas Prompt Payment Public Projects FAQs

Do I have to send a letter or file anything to qualify for Prompt Payment Penalties or Remedies in Arkansas?

Entitlement to remedies provided for by the Arkansas prompt pay statute are governed by the parties’ contracts.

Can I include Prompt Payment Fees in my Arkansas Mechanics Liens Claim or Bond Claim?

No. Arkansas law does not allow for the recovery of miscellaneous amounts in a bond claim.

Are there reasons for which payment may be withheld past the general deadline?

The Arkansas prompt pay statute does not specifically identify reasons for which a payment may be withheld.

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Arkansas Prompt Payment
Recent Questions & Answers

Arkansas Prompt Payment Statute FAQs

Getting informed about prompt payment laws is important. An examination of Arkansas’ prompt payment laws, the rules and regulations related to payment timing, is important to know your rights and responsibilities as a party on a construction project. Arkansas’ specific laws can be found in: Ark. Code § 19-4-1411 , and are reproduced below.

Prompt Payment Statute on Private Projects

Does Arkansas have Prompt Payment statute on Private Projects?

Arkansas does not provide a prompt payment statute for private projects.

Prompt Payment Statute on Public Projects

19-4-1411: Processing of Payments

(a)
(1) When a contractor submits a properly prepared request for payment of work completed on state construction projects and the request for payment conforms with the provisions of the contract award and laws of the State of Arkansas, the following maximum time is allowed for the processing of the payment requests by the various parties involved, excluding time required for transmittal from one (1) party to another:

(A) A design professional – five (5) working days;

(B) A state agency or institution of higher education exempt from review and approval by the Arkansas Building Authority – five (5) working days, including preparation of a voucher and submission for payment; and

(C) The Department of Finance and Administration – five (5) working days.

(2) Should payment be contested by any of the parties listed in this subsection, it shall be the responsibility of the parties contesting the payment, within the time specified for processing payment, to notify the contractor involved that payment has been contested and reasons therefor.

(3) Should any of the parties listed in this subsection fail to properly process uncontested requests for payments within the time limits specified following date of receipt, a penalty of eight percent (8%) per annum of the amount of the request for payment shall be assessed against the parties responsible for the delay.

(b)
(1) The Chief Fiscal Officer of the State shall establish procedures for monitoring payments to contractors. When it has been determined that payment processing has exceeded the time limits established in this section, the Chief Fiscal Officer of the State shall cause an investigation to be made for the purpose of determining the responsible parties and the amount of penalty to be paid.

(2) Penalties assessed for failure to comply with the provisions in this section shall be paid to the contractor by the parties responsible in accordance with procedures established by the Chief Fiscal Officer of the State.

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