Late Fees on Invoices in Georgia
What Georgia contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
1% per month on construction; 5% above Federal Reserve discount rate otherwise
Small Claims Limit
$15,000
Magistrate Court
Mechanics Lien Deadline
90 days from substantial completion
Georgia Prompt Payment Act
Georgia Prompt Pay Act, O.C.G.A. § 13-11-1 et seq.
Georgia requires payment within 15 days of an approved pay application for construction. Interest accrues at 1% per month on late payments.
Late fee rules for Georgia invoices
Georgia allows contractual late fees as long as they are reasonable. The Prompt Pay Act provides specific remedies for construction contracts.
Georgia's Prompt Pay Act specifies 1% per month for construction contracts. Other contracts default to 7% per annum unless otherwise agreed.
Important disclaimer
This page provides general information about Georgia late fee rules. It is not legal advice. Laws change, and your specific situation may have unique factors. For disputes involving significant amounts, consult a licensed attorney in Georgia.
Demand letters and mechanics liens in Georgia
Georgia does not require a demand letter for mechanics liens, but sending one often resolves the dispute before filing.
Mechanics lien deadline: 90 days from substantial completion. A preliminary notice (Notice of Commencement) may be required depending on the county.
Sample late fee clause for Georgia invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (1% per month on construction; 5% above Federal Reserve discount rate otherwise maximum per Georgia law) will be applied to all balances remaining unpaid after the due date. Pursuant to the Georgia Prompt Pay Act (O.C.G.A. § 13-11-1 et seq.), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $15,000 in Magistrate Court), and referral to collections.”
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Start Free TrialFrequently asked questions — Georgia
What is the maximum late fee I can charge on an invoice in Georgia?▾
In Georgia, Georgia's Prompt Pay Act specifies 1% per month for construction contracts. Other contracts default to 7% per annum unless otherwise agreed. Always disclose late fee terms in your contract or invoice before work begins.
Does Georgia have a prompt payment act?▾
Yes. Georgia requires payment within 15 days of an approved pay application for construction. Interest accrues at 1% per month on late payments.
What is the small claims court limit in Georgia?▾
The small claims court limit in Georgia is $15,000. Claims are filed in Magistrate Court. You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Georgia?▾
In Georgia, 90 days from substantial completion. A preliminary notice (Notice of Commencement) may be required depending on the county.
Do I need to send a demand letter before filing a lien in Georgia?▾
Georgia does not require a demand letter for mechanics liens, but sending one often resolves the dispute before filing.