Progress payment clocks: 4 statutes and clauses to check

• Florida Senate states payment is due 25 business days after the invoice is stamped as received if an agent must approve it first, according to Florida Senate .
• Minnesota Revisor of Statutes requires prompt payment within ten days after the responsible party receives payment for undisputed services, according to Minnesota Revisor of Statutes .
• Acquisition.gov notes the Contracting Officer may retain a maximum of 10 percent of the payment amount if satisfactory progress has not been made, according to Acquisition.gov .

Before writing numbers on an invoice, identify the exact law or contract clause that governs the specific construction job. The day count and holdback percent are not universal; they vary by jurisdiction and project type. For instance, if an agent must approve the payment request before it is submitted to the local governmental entity, payment is due 25 business days after the date on which the payment request or invoice is stamped as received, according to Florida Senate . This rule applies specifically to local governmental entities in Florida under Chapter 218 Section 735 of the 2025 Florida Statutes.

In contrast, a building and construction contract is deemed to require the prime contractor and all subcontractors to promptly pay any subcontractor or material supplier within ten days after the party responsible for payment receives payment for undisputed services provided by the party requesting payment, including payments under subdivision 4, according to Minnesota Revisor of Statutes . This ten-day window is distinct from Florida's 25-business-day clock and applies to subcontractor and material supplier payments in Minnesota. The two statutes define different triggers and different timeframes. You cannot use the Florida 25-day figure on a Minnesota subcontract bill, nor can you apply the Minnesota ten-day rule to a Florida local government invoice.

When a local government entity handles a construction payment request, the deadline depends on whether an agent must approve the invoice before it reaches the entity. If an agent must approve the payment request or invoice before submission to the local governmental entity, payment is due 25 business days after the date the request is stamped as received, according to Florida Senate . This window applies specifically when that approval step is required by the process described in Chapter 218 Section 735 of the 2025 Florida Statutes. You should record this 25-business-day count only on bills for jobs where that specific approval trigger exists. For how estimate approval affects billing, read partial billing rules for estimate approval .

If an agent need not approve the payment request or invoice submitted by the contractor, payment is due 20 business days after the date the request is stamped as received, according to Florida Senate . This shorter window applies when the contractor submits the invoice directly without the intermediate agent approval step outlined in the statute. Do not copy the 25-day figure onto a job that falls under this second scenario.

A third timing rule addresses what happens if the entity does not reject the invoice promptly. If the payment request or invoice is not rejected within 4 business days after delivery of the overdue notice, the payment request or invoice shall be deemed accepted, except for any portion that is fraudulent or misleading, according to Florida Senate . This deemed-accepted rule provides a specific outcome for invoices that remain unaddressed after the overdue notice is delivered. It does not extend the initial payment deadline but defines the status of the invoice if rejection does not occur within that short period.

Check your contract to see if an agent approval step is required before you send the bill. If the answer is yes, use the 25-business-day clock; if no, use the 20-business-day clock. Write that specific number on the progress bill so the payer knows which statutory window applies to that particular submission.

When a building and construction contract is in effect, the prime contractor and all subcontractors must promptly pay any subcontractor or material supplier within ten days after the party responsible for payment receives payment. This window applies to undisputed services provided by the party requesting payment, including payments under subdivision 4, according to Minnesota Revisor of Statutes . The statute deems this requirement part of the contract itself. If the responsible party fails to pay an undisputed amount on time, the contract requires them to pay interest of 1-1/2 percent per month to the party requesting payment, as stated by the Minnesota Revisor of Statutes . This monthly rate applies specifically to amounts that remain unpaid past the ten-day deadline. Furthermore, the law sets a minimum penalty floor: the minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10, according to the Minnesota Revisor of Statutes . These three elements, the ten-day payment window, the 1-1/2 percent monthly interest, and the $10 minimum penalty, form the core financial obligations for subcontract payments in Minnesota.

Record these specific figures directly on your progress bill if the job falls under a Minnesota building and construction contract. Confirm with counsel whether this statute covers your specific private contract. Check the date the responsible party received payment for the undisputed services to start the ten-day count, and note the 1-1/2 percent monthly interest accrual for any undisputed balance that remains unpaid after that period. If your outstanding balance meets the $100 threshold, ensure your records reflect the $10 minimum monthly penalty calculation. Use only the numbers printed in the statute for this specific jurisdiction; do not substitute rates from other states.

Washington State Legislature rules apply to public improvement contracts, requiring bodies to reserve a contract retainage not to exceed five percent of moneys earned by the contractor according to Washington State Legislature . This amount acts as a trust fund protecting claims arising under the contract and state taxes imposed pursuant to Titles 50, 51, and 82 RCW according to Washington State Legislature . The federal structure differs by operating on monthly progress payments made as work proceeds or at more frequent intervals determined by the Contracting Officer according to Acquisition.gov . These payments are based on estimates of work accomplished that meet quality standards established under the contract and approved by the Contracting Officer according to Acquisition.gov . If satisfactory progress has not been made, the Contracting Officer may retain a maximum of 10 percent of the payment amount until satisfactory progress is achieved according to Acquisition.gov . Additionally, progress payments shall not exceed 80 percent on work accomplished on undefinitized contract actions regardless of other contract provisions according to Acquisition.gov . For a separate look at federal timing, see federal prompt-payment clocks .

Do not apply the federal 80 percent limit to state or private jobs, as it applies only to undefinitized federal contract actions according to Acquisition.gov . Record the specific holdback percentage from the statute governing your particular job type before finalizing the bill.

Use the table below to record the specific day count or holdback percent for the job you are billing. Each row pulls its number directly from the named statute so you do not copy one state's figure onto another contract. Verify the publisher and clause before writing the line on your progress bill.

The Florida Senate states that a public entity may withhold from each progress payment made to the contractor an amount not exceeding 5 percent of the payment as retainage, according to Florida Senate . This cap applies specifically to contracts for construction services. The same source notes that section 255.077 does not prohibit a public entity from withholding retainage at a rate less than 5 percent of each progress payment, according to Florida Senate .

When you draft the progress bill for a Florida public project, verify whether your contract includes a schedule for incrementally reducing the retainage rate. The Florida Senate explains that a public entity is not prohibited from releasing at any point all or a portion of any retainage withheld, which is attributable to the labor, services, or materials supplied by the contractor or by one or more subcontractors or suppliers, according to Florida Senate . Do not assume the five percent figure is the only option if your contract specifies a lower percentage. Check the specific language in your agreement to see if it allows for early release of funds tied to completed work. If the contract remains silent on reductions, the statutory permission for rates less than five percent still stands as a permissible practice for the public entity. Keep the number on your invoice aligned with what the paying authority actually withholds, rather than the maximum legal limit, if they choose to hold back less. For a checklist of public contract terms, see public works contract items .

When is a Florida local-government construction payment due if an agent must approve the request, and when is it due if no agent must approve it?

According to Florida Senate , if an agent must approve the payment request or invoice before submission to the local governmental entity, payment is due 25 business days after the date on which the payment request or invoice is stamped as received. If an agent need not approve the payment request or invoice submitted by the contractor, payment is due 20 business days after the date on which the payment request or invoice is stamped as received.

How many days does Minnesota allow before a subcontract payment, and what interest does that page state?

A building and construction contract shall be deemed to require the prime contractor and all subcontractors to promptly pay any subcontractor or material supplier within ten days after the party responsible for payment receives payment for undisputed services provided by the party requesting payment, including payments under subdivision 4, according to Minnesota Revisor of Statutes . The contract shall be deemed to require the party responsible for payment to pay interest of 1-1/2 percent per month to the party requesting payment on any undisputed amount not paid on time.

What retainage percent does Washington reserve on a public improvement contract?

Public improvement contracts must provide, and public bodies must reserve, a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of claims arising under the contract and taxes imposed pursuant to Titles 50, 51, and 82 RCW, according to Washington State Legislature .

What retainage percent does Florida allow a public entity to withhold from a progress payment?

With regard to any contract for construction services, a public entity may withhold from each progress payment made to the contractor an amount not exceeding 5 percent of the payment as retainage, according to Florida Senate .

What monthly progress payment, 10 percent hold, and 80 percent limit does the federal construction clause state?

The Government shall make progress payments monthly as the work proceeds, or at more frequent intervals as determined by the Contracting Officer, on estimates of work accomplished which meets the standards of quality established under the contract, as approved by the Contracting Officer, according to Acquisition.gov . If satisfactory progress has not been made, the Contracting Officer may retain a maximum of 10 percent of the amount of the payment until satisfactory progress is achieved. Progress payments shall not exceed 80 percent on work accomplished on undefinitized contract actions.