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Prime Contractor to Subcontractor (Public): 14 days from receipt of payment from owner. Interest/Penalties (Public): Interest at a rate of 0.5% per day, not to exceed 15% of the amount due, plus reasonable attorney fees if payment was withheld without reasonable cause. Pay-If-Paid Permissible: Yes.
Residential property includes home improvements or the new building of one to four-unit family dwellings. Just like commercial projects, subcontractors and specialty trades working on the residential project need to be licensed unless the contract price is less than $75,000.
La. R.S. 9:2772 prohibits any lawsuit against a contractor for damages arising from a construction project five years after: (1) the date project acceptance was filed into the public records; or, if no acceptance was filed, (2) the date of occupancy. This five-year period is referred to as the peremptive period.
A payment clause that obligates the Contractor to pay the subcontractor for satisfactory performance under its subcontract not later than 7 days from receipt of payment out of such amounts as are paid to the Contractor under this contract.
In the construction and contracting industry, it is standard industry practice to collect payment for services provided within 30 days.
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A contractor is a person or company that obtains contracts directly from customers and carries them out, while a subcontractor forms agreements with contractors to perform specific tasks within a larger project.
38:2191. A. All public entities shall promptly pay all obligations arising under public contracts when the obligations become due and payable under the contract. All progressive stage payments and final payments shall be paid when they respectively become due and payable under the contract.

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