08/26/2026
Louisiana’s Prompt Pay law changed August 1, 2026, and contractors, subcontractors, suppliers and project owners need to understand what Act 822 means for construction payments.
I went to Baton Rouge this week for the ASA of Greater Baton Rouge luncheon to hear Laperouse Patin break down the changes to Louisiana Act 822 / La. R.S. 9:2784 and what they mean in practice for our construction industry.
One of the biggest changes is that, on most covered private construction projects, the payment clock now starts with the owner. A properly submitted payment request generally must be paid within 35 days, and once a contractor receives payment, amounts attributable to subcontractors and suppliers generally need to move downstream within 7 days.
The law also puts considerably more weight behind those deadlines. Certain unpaid amounts can accrue a 1.5% monthly penalty, and the law provides for reasonable attorney fees and court costs to the prevailing party in an action under the statute.
But one of my biggest takeaways from the discussion was even simpler:
Documentation matters.
If there is a legitimate dispute involving defective or incomplete work, delay or another payment issue, there are circumstances where an amount can be withheld. But the undisputed portion still needs to be paid, and the reason for withholding money needs to be well documented.
That makes good project-management systems, schedules, payment applications, written notices and job records more important than ever. What sometimes feels like administrative paperwork can very quickly become an important legal and financial record of what actually happened on a project.
I attended the luncheon with Chris Van Pelt of M&M Glass, whose involvement in the Home Builders Association reaches across multiple local associations as well as the state and national levels, and Shirley with the Louisiana Home Builders Association.
Michelle was specifically recognized during the presentation for the work she has done on this Prompt Pay legislation, the Louisiana New Home Warranty Act and many other issues affecting builders and contractors throughout Louisiana.
That recognition was well deserved, and it highlighted something I don't think we talk about enough.
A strong trade association is about much more than meetings and networking. Advocacy is one of the most valuable things our membership provides.
By the time a new law reaches our businesses, there have often been months or years of work behind the scenes—reviewing legislation, explaining the real-world consequences to lawmakers, proposing changes and making sure the people who actually build our homes and communities have a credible voice in the process.
Through the Home Builders Association, our local HBAs and the broader association network, Louisiana's building industry has developed a level of representation and standing that is recognized well beyond our own organization. That's something worth protecting, supporting and continuing to strengthen.
We won't win every issue and won't agree on every detail. But having a seat at the table—and knowledgeable people doing the work once we're there—matters.
For anyone in Louisiana construction who wants to review the legislation directly, here is the official enrolled Act from the Louisiana Legislature:
Louisiana Act 822 / HB 638 https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1481451&utm_source=chatgpt.com Prompt Pay Law
There are exceptions and different rules involving public work, certain residential contracts and some industrial work, so contractors should review how the law applies to their own projects and agreements.
Know your contracts. Know the payment deadlines. Document the job.
