Late Fees on Invoices in Virginia
What Virginia 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 (maximum without written agreement); higher by contract
Small Claims Limit
$5,000
General District Court (Small Claims Division)
Mechanics Lien Deadline
90 days from the last day of furnishing for GCs and subs
Virginia Prompt Payment Act
Virginia Prompt Payment Act, Va. Code § 2.2-4347 et seq.
Virginia requires government entities to pay within 45 days. Private construction follows contract terms with mechanics lien enforcement under Va. Code § 43-1 et seq.
Late fee rules for Virginia invoices
Virginia enforces contractual late fees. Without a written agreement, interest is capped at 12% per annum.
Virginia allows up to 12% per annum without a written agreement, higher rates with a written contract. The Prompt Payment Act adds 1% per month for government contracts.
Important disclaimer
This page provides general information about Virginia 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 Virginia.
Demand letters and mechanics liens in Virginia
Virginia does not require a formal demand letter for mechanics liens, but best practice is to send a written demand before filing.
Mechanics lien deadline: 90 days from the last day of furnishing for GCs and subs. A Notice of Intent must be sent to the owner at least 30 days before filing.
Sample late fee clause for Virginia invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (12% per annum (maximum without written agreement); higher by contract maximum per Virginia law) will be applied to all balances remaining unpaid after the due date. Pursuant to Virginia Code § 43-3 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 $5,000 in General District Court (Small Claims Division)), and referral to collections.”
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Start Free TrialFrequently asked questions — Virginia
What is the maximum late fee I can charge on an invoice in Virginia?▾
In Virginia, Virginia allows up to 12% per annum without a written agreement, higher rates with a written contract. The Prompt Payment Act adds 1% per month for government contracts. Always disclose late fee terms in your contract or invoice before work begins.
Does Virginia have a prompt payment act?▾
Yes. Virginia requires government entities to pay within 45 days. Private construction follows contract terms with mechanics lien enforcement under Va. Code § 43-1 et seq.
What is the small claims court limit in Virginia?▾
The small claims court limit in Virginia is $5,000. Claims are filed in General District Court (Small Claims Division). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Virginia?▾
In Virginia, 90 days from the last day of furnishing for GCs and subs. A Notice of Intent must be sent to the owner at least 30 days before filing.
Do I need to send a demand letter before filing a lien in Virginia?▾
Virginia does not require a formal demand letter for mechanics liens, but best practice is to send a written demand before filing.