Business & Construction Law in Smyrna

Georgia Payment, Lien & Construction-Defect Deadlines

Construction claims can be affected by short notice periods and statutory filing deadlines. The applicable requirements depend on the parties, project type, contract documents, and procedural history, so prompt review is important.

Prompt Payment Requirements

The Georgia Prompt Pay Act generally requires an owner to pay a contractor within 15 days of receiving a proper invoice or payment request. A contractor typically must pay a subcontractor within 10 days of receiving payment. The Act excludes contracts involving residential improvements of 12 or fewer units.

Qualifying late payments can accrue interest at 1% per month on the unpaid balance if the paying party received notice of the interest provision with the payment request. Whether the Act applies requires a review of the project and payment circumstances.

Construction Lien Deadlines

When a Notice of Commencement has been filed, subcontractors and suppliers below the prime contractor typically must serve a Notice to Contractor within 30 days of first furnishing labor or materials. A Georgia construction lien usually must be filed within 90 days of the claimant’s last provision of labor or materials.

Filing the lien isn’t the final enforcement step. A claimant typically must perfect the lien through a lawsuit or arbitration within 365 days of the original filing date. Missing that deadline can result in the loss of enforcement rights.

Georgia’s Right to Repair Act generally requires a homeowner to give written notice of an alleged construction defect at least 90 days before filing suit. The contractor must also receive a reasonable opportunity to inspect and correct the claimed defect before litigation proceeds.