Significant Changes Made to Louisiana’s Prompt Payment Statute Regarding Payments made to Contractors/Subcontractors/Suppliers on Private Construction Projects

By Kari “Kiki” Bergeron

The 2026 Louisiana Regular Legislative Session significantly revised La. R.S. 9:2787, known as Louisiana’s Prompt Pay Statute, which strengthened payment protections for contractors, subcontractors, and suppliers relating to work furnished on private construction projects. Importantly, the amended statute creates shortened payment deadlines with penalties that cannot be waived by contract, marking a departure from the general rule that parties can negotiate payment terms via contract.

The amended statute, which takes effect on August 1, 2026, enacted the following key changes:

• An owner must pay the contractor within 35 days of receipt of the contractor’s written payment request, except any amounts that are authorized by law or contract to be withheld.

• If the owner fails to make the payment timely, in the absence of a good faith dispute, the owner shall pay the contractor a penalty of 1.5% of the unpaid amount per month, which commences the day after payment is due and runs until the earlier of the date payment is delivered, the date payment is mailed if delivered within 3 days, or the date a judgment is rendered on an action brought pursuant to this statute. Unlike the previous law, there is no 15% cap on this penalty.

• When a contractor receives payment from the owner, the contractor must pay each subcontractor and/or supplier the portion attributable to that subcontractor’s or supplier’s work performed or materials provided, including any interest accrued, no later than 7 days after receiving payment from the owner. The previous statute allowed 14 days for payment.

• Subcontractors are also required to pay their subcontractors and/or suppliers within this new 7 day time frame.  

• If a contractor or subcontractor fails to make payment that is due to its subcontractors and/or suppliers within 7 consecutive days of receipt of payment from the owner, in the absence of good faith, the contractor or subcontractor shall pay a penalty of 1.5% of the unpaid amount per month, with no cap on this penalty.

• A contractor, subcontractor, or supplier may bring an action to collect payments and penalties owed under this statute, which includes the recovery of court costs and reasonable attorney fees to the prevailing parties.

• The amended statute contains exceptions to the applicability of this law, including the prompt payment obligations for public construction projects, certain oil and gas exploration and production activities, well or mine services, etc.

Project owners, and anyone who furnishes labor, materials, and services to private construction projects in Louisiana, should review and comply with these new statutory payment deadlines.  They should also maintain clear payment records and confirm that the payment provisions in their contracts are consistent with the amended law.