Late Fees on Invoices in North Dakota
What North Dakota contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
6% per annum (default legal rate); 5.5% above the 6-month T-bill rate for variable rate contracts
Small Claims Limit
$15,000
Small Claims Court (District Court)
Mechanics Lien Deadline
90 days from the last day of furnishing labor or materials
North Dakota Prompt Payment Act
North Dakota Prompt Payment Act, N.D.C.C. § 13-01.1-01 et seq.
North Dakota requires state agencies to pay within 30 days. The Construction Lien Law provides enforcement for unpaid contractors and subcontractors.
Late fee rules for North Dakota invoices
North Dakota has a generous $15,000 small claims limit. Late fees must comply with the variable usury cap tied to the Treasury bill rate.
North Dakota's default legal interest rate is 6% per annum. The maximum contract rate is 5.5% above the current 6-month Treasury bill rate.
Important disclaimer
This page provides general information about North Dakota 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 North Dakota.
Demand letters and mechanics liens in North Dakota
North Dakota does not require a demand letter, but a pre-lien notice must be given within 45 days of first furnishing for those without a direct contract with the owner.
Mechanics lien deadline: 90 days from the last day of furnishing labor or materials. A construction lien must be recorded with the county recorder.
Sample late fee clause for North Dakota invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (6% per annum (default legal rate); 5.5% above the 6-month T-bill rate for variable rate contracts maximum per North Dakota law) will be applied to all balances remaining unpaid after the due date. Pursuant to North Dakota Century Code § 35-27-01 et seq. (Construction Liens), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $15,000 in Small Claims Court (District Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — North Dakota
What is the maximum late fee I can charge on an invoice in North Dakota?▾
In North Dakota, North Dakota's default legal interest rate is 6% per annum. The maximum contract rate is 5.5% above the current 6-month Treasury bill rate. Always disclose late fee terms in your contract or invoice before work begins.
Does North Dakota have a prompt payment act?▾
Yes. North Dakota requires state agencies to pay within 30 days. The Construction Lien Law provides enforcement for unpaid contractors and subcontractors.
What is the small claims court limit in North Dakota?▾
The small claims court limit in North Dakota is $15,000. Claims are filed in Small Claims Court (District Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in North Dakota?▾
In North Dakota, 90 days from the last day of furnishing labor or materials. A construction lien must be recorded with the county recorder.
Do I need to send a demand letter before filing a lien in North Dakota?▾
North Dakota does not require a demand letter, but a pre-lien notice must be given within 45 days of first furnishing for those without a direct contract with the owner.