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It is important to keep in mind that the lien law protects anyone and everyone who supplies materials or services to the property through either a written or oral contract that is traceable to the owner.
Once the prime contractor has received any type of payment from the public entity, the contractor must pay their subcontractors within 10 days of receipt of payment.
Prime Contractors State: progress payment due within 35 days of invoice; and final/retainage payment due within 61 days from substantial completion. Local: Payment due 45 days after invoice.
ACH transfers are the most common form of payment between employers and employees (i.e. direct deposit). While contractors are not employees, they can be set up with one-time or recurring ACH transfers in the same way to pay contractors with direct deposit.
A pay if paid clause, in its simplest terms, means that a contractor will only get paid if the prime contractor is paid by the owner.

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What to do if a client refuses to pay you Communicate with the client. Try to find a reasonable solution. Sue the client in small claims court. Get everything in writing. Get a deposit. Choose your clients wisely.
The prime contractor must pay its subcontractor(s) for satisfactory completion of their work within 10 days after the contractor receives payment from INDOT for the work performed by the subcontractor(s).
(8) A contractor shall pay its subcontractors any undisputed amounts due within fifteen (15) business days of receipt of payment from the contracting entity, including payment of retainage if retainage is released by the contracting entity, if the subcontractor has provided a timely, properly completed, and undisputed

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