What are the prompt payment rules for construction in Arizona?
Last reviewed July 5, 2026
In Arizona, the prompt payment law requires general contractors to pay subcontractors within 7 days of receiving payment from the owner. Subcontractors must pay their subs within 7 days of receiving payment. If payment is not made, interest may accrue at 1.5% per month.
Key points
- 7-day payment rule for general contractors and subs
- Interest accrues if payments are late
- Check for specific contract terms that may differ
Make sure to document all payment dates and communications. If a payment is delayed, follow up promptly and keep records of all communications. Arizona's law is designed to keep cash flow moving, but the contract terms can sometimes have different stipulations.
How Alloovium helps
Alloovium helps track payment obligations and deadlines to keep you compliant.
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General information for US construction professionals — not legal advice. Lien deadlines, retainage caps and notice rules vary by state; verify with the state statute or a construction attorney.