§2784. Prompt payment by owners to contractors; prompt payment to subcontractors
and suppliers; penalties; action to collect payment; attorney fees and costs
A.(1) If an owner or person authorized to act on behalf of the owner receives
a written payment request from a contractor for an amount payable under a contract
for construction of improvements made to an immovable for properly performed
work or suitably stored or specially fabricated materials under the contract, the owner
shall pay the amount owed to the contractor, unless any amount is withheld as
authorized by law, the contract, or this Section, no later than thirty-five days
following receipt of the written request.
(2) If the owner or person authorized to act on behalf of the owner fails to
make payment to the contractor within thirty-five days of the receipt of the written
payment request from a contractor for improvements to an immovable, in the absence
of a good faith dispute, the owner shall pay to the contractor a penalty in accordance
with Subsection D of this Section. This penalty shall be in addition to any other
remedies authorized by law or the contract for construction on or improvements to
the immovable.
B.(1) A contractor who receives any payment from the owner or person
authorized to act on behalf of the owner for the construction of or for improvements
made to an immovable shall promptly pay each subcontractor and supplier the
portion of payment that is attributable to work properly performed or materials
suitably stored or specially fabricated as provided by the contract by the
subcontractor or supplier, including any interest accrued, to the extent of the
subcontractor or supplier's interest in the payment. The payment required by this
Subsection shall be made no later than the seventh day after the date the contractor
receives payment from the owner or person authorized to act on behalf of the owner.
(2) A subcontractor who receives a payment from the contractor pursuant to
this Section or from a contractor in connection with a contract to improve an
immovable shall promptly pay each subcontractor and supplier the portion of the
payment that is attributable to work properly performed or materials suitably stored
or specially fabricated as provided under the contract by the subcontractor or
supplier, including any interest, to the extent of the subcontractor's or supplier's
interest in the payment. The payment required by this Subsection shall be made no
later than the seventh day after the date the subcontractor receives payment from the
contractor.
(3) If the contractor or subcontractor fails to make payment that is due to his
subcontractors and suppliers within seven consecutive days of the receipt of payment
from the owner or contractor for improvements to an immovable in the absence of
a good faith dispute, the contractor or subcontractor shall pay to the subcontractors
and suppliers, in addition to the payment, a penalty in accordance with Subsection
D of this Section. This penalty shall be in addition to any other remedies authorized
by law, the contract for construction on or improvements to the immovable, or any
other agreement between the contractor, subcontractor, or suppliers.
C. If a good faith dispute exists concerning the amount owed for a payment
requested or required by this Section under a contract for construction of or
improvements to an immovable, the owner, contractor, or subcontractor disputing the
obligation to pay shall pay the amount that is not in dispute by the applicable date
required by this Section. For purposes of this Section, a good faith dispute may
include a dispute regarding whether the work was performed in a proper manner
under the contract.
D.(1) An unpaid amount as described in this Section shall incur a penalty at
the rate of one and one-half percent of the unpaid amount per month. This penalty
begins to accrue the day after the date on which the payment is due.
(2) The penalty on any unpaid amounts pursuant to this Section stops
accruing on the earlier of the date of delivery of payment, the date the payment is
mailed if delivered within three days, or the date a judgment is rendered on an action
brought pursuant to this Section.
E. A waiver of a provision of this Section shall be absolutely null. However,
a written contract between an owner and a contractor for improvements on or
construction of a single-family residence may provide that the payment required in
accordance with this Section be made at a time not later than sixty-one days after the
date the owner receives the payment request. Any unpaid amount under contract that
allows payment later than the date otherwise required by Subsection A of this Section
incurs a penalty in accordance with Subsection D of this Section.
F. A contractor, subcontractor, or supplier may bring an action to collect the
payments and penalties owed in accordance with this Section. The court shall award
court costs and reasonable attorney fees to the prevailing party. The rights and
remedies provided by this Section are in addition to any other rights and remedies
available under the law or contract. Nothing in this Section shall be construed to
create a right of action of the contractor, subcontractor, or supplier against a lender
or insurer.
G.(1) The provisions of this Section do not supercede the prompt payment
obligations and penalties for contracts with a public entity as required in R.S.
38:2191.
(2) The date of payment required of the owner pursuant to this Section shall
be the later of thirty-five days after the date the owner receives the payment request
or the fifth day after the date the owner receives loan proceeds for the payment that
is due when all of the following occurs:
(a) The owner has, prior to the contractor's payment request, obtained a loan
intended to pay for all or part of a contract to improve immovable property.
(b) The owner has timely and properly requested disbursement of proceeds
from that loan.
(3) This Section does not apply to any of the following:
(a) Agreements authorizing the exploration, production, manufacturing, or
development of oil, natural gas, natural gas liquids, synthetic gas, sulphur, ore,
chemicals, or other mineral substances, including any lease or royalty agreement,
joint interest agreement, production or production-related agreement, operating
agreement, farmout agreement, area of mutual interest agreement, or other related
agreement.
(b) Well or mine services.
(c) The purchase, sale, gathering, storage, or transport of oil, natural gas,
natural gas liquids, synthetic gas, or other hydrocarbon substances by pipeline or by
a fixed associated facility.
(d) For the purposes of this exemption, "agreement" includes a written or oral
agreement or understanding that does any of the following:
(i) Provides work or services, including any construction, operating, repair,
or maintenance services.
(ii) Performs a part of the services covered by Subparagraph (a) of this
Paragraph or an act collateral to those services, including furnishing or renting
equipment, incidental transportation, or other goods and services furnished in
connection with those services.
(e) For the purposes of this exemption, "well or mine services" includes
either of the following:
(i) Drilling, deepening, reworking, repairing, improving, testing, treating,
perforating, acidizing, logging, conditioning, purchasing, gathering, storing, or
transporting oil or natural gas, brine water, fresh water, produced water, condensate,
petroleum products, or other liquid commodities, or otherwise rendering services in
connection with a well drilled to produce or dispose of oil, gas, or other minerals or
water.
(ii) Designing, excavating, constructing, improving, or otherwise rendering
services in connection with an oil, gas, or other mineral production platform or
facility, mine shaft, drift, or other structure intended directly for use in exploring for
or producing a mineral.
Acts 1984, No. 720, §1; Acts 1986, No. 718, §1; Acts 1986, No. 750, §1;
Acts 1987, No. 698, §1; Acts 2026, No. 822, §1.