Late Fees on Invoices in Massachusetts
What Massachusetts contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
12% per annum on construction; 6% default otherwise
Small Claims Limit
$7,000
Small Claims Session (District or Boston Municipal Court)
Mechanics Lien Deadline
90 days from the last day of performing or furnishing
Massachusetts Prompt Payment Act
Massachusetts Prompt Payment Act, M.G.L. c. 30 § 39K
Massachusetts requires payment within 30 days on public construction. The Prompt Pay Act also covers private construction, requiring payment within 30 days of an approved application.
Late fee rules for Massachusetts invoices
Massachusetts has strong prompt payment protections for construction. No general usury statute means commercial late fee clauses have wide latitude.
Massachusetts' default legal interest rate is 6% per annum. The Prompt Pay Act provides 12% per annum on late construction payments. There is no general usury statute.
Important disclaimer
This page provides general information about Massachusetts 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 Massachusetts.
Demand letters and mechanics liens in Massachusetts
Massachusetts does not require a demand letter, but a Notice of Identification must be given for subcontractors to preserve lien rights.
Mechanics lien deadline: 90 days from the last day of performing or furnishing. A Notice of Contract must be filed within 60 days of the original contract.
Sample late fee clause for Massachusetts invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (12% per annum on construction; 6% default otherwise maximum per Massachusetts law) will be applied to all balances remaining unpaid after the due date. Pursuant to M.G.L. c. 254 § 1 et seq. (Mechanics' Liens), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $7,000 in Small Claims Session (District or Boston Municipal Court)), and referral to collections.”
Stop chasing — let InvoiceFlows send the reminders for you
AI-written reminders that escalate from friendly to firm. Works for Massachusetts contractors, tradespeople, and small businesses. $9/month, 30-day free trial.
Start Free TrialFrequently asked questions — Massachusetts
What is the maximum late fee I can charge on an invoice in Massachusetts?▾
In Massachusetts, Massachusetts' default legal interest rate is 6% per annum. The Prompt Pay Act provides 12% per annum on late construction payments. There is no general usury statute. Always disclose late fee terms in your contract or invoice before work begins.
Does Massachusetts have a prompt payment act?▾
Yes. Massachusetts requires payment within 30 days on public construction. The Prompt Pay Act also covers private construction, requiring payment within 30 days of an approved application.
What is the small claims court limit in Massachusetts?▾
The small claims court limit in Massachusetts is $7,000. Claims are filed in Small Claims Session (District or Boston Municipal Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Massachusetts?▾
In Massachusetts, 90 days from the last day of performing or furnishing. A Notice of Contract must be filed within 60 days of the original contract.
Do I need to send a demand letter before filing a lien in Massachusetts?▾
Massachusetts does not require a demand letter, but a Notice of Identification must be given for subcontractors to preserve lien rights.