Under the Alabama prompt pay law, what is the maximum number of days a property owner has to pay a contractor upon receiving a pay request for work done?

Prepare for the Alabama State Home Builder Licensure Exam with flashcards and multiple-choice questions featuring hints and explanations. Ace your exam!

Under Alabama's prompt pay law, a property owner is required to pay a contractor within 30 days of receiving a pay request for work completed. This regulation is designed to ensure timely payment for services rendered, thus helping to maintain cash flow for contractors and subcontractors. The 30-day timeframe reflects a balance between allowing property owners adequate time to process payments while also protecting the interests of those providing labor and materials.

This legal requirement is crucial for contractors as it establishes a clear timeline for when they can expect payment, reducing uncertainty in the project cash flow. By adhering to this provision, both property owners and contractors can foster a more productive and cooperative working relationship.

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