What are the prompt payment rules for construction in Colorado?
Last reviewed July 5, 2026
In Colorado, prompt payment laws require that contractors must pay their subcontractors within 7 days of receiving payment from the owner. For public projects, the owner has 30 days to pay the contractor after receiving a proper invoice. Late payments can incur interest at 1% per month.
Key points
- 7 days for subs after GC gets paid
- 30 days for GC from owner
- Interest on late payments at 1%/month
- Law applies to both private and public projects
Make sure you check the specific contract terms as they may outline different payment schedules. Also, be aware that Colorado law allows for a written notice to be sent if payments are late, which can help in enforcing these rules.
How Alloovium helps
Alloovium helps track payment obligations and deadlines to keep your project compliant.
See how it worksRelated questions
- Can a subcontractor file a lien without a written contract in Colorado?
- Do I need to send a preliminary notice before filing a lien in Colorado?
- How long does a mechanics lien last in Colorado?
- How much retainage can be withheld on a construction project in Colorado?
- What is the deadline to file a mechanics lien in Colorado?
- What is the difference between a conditional and unconditional lien waiver in Colorado?
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.