A pay clock is a payment timing rule that sets a deadline to pay or the earliest day a highway payment may start. According to the Texas Department of Transportation, the department may not pay a contractor for highway improvement, construction, or maintenance before the 10th day of the month after the month in which the work is performed or the material is used.
Key takeaways for construction pay clock rules
- Copy the Texas Department of Transportation estimate cutoff rule: the earliest cut-off date for estimates is on the 25th of the month, with the MOH submitted no later than 2 days before the established cut-off date, according to Texas Department of Transportation.
- Record the Texas mobilization remainder timing: at final project acceptance (DCO acceptance), create a DWR to pay the contractor the remaining 7% of the mobilization lump sum bid item, according to Texas Department of Transportation.
- Log the Texas final estimate window: within 60 days of final acceptance, generate the final estimate paying the remaining 3% mobilization and any additional pay item adjustments, according to Texas Department of Transportation.
- Write the publisher name beside each clock on your estimate so the source is visible when the price is locked.
Where the five official pay clocks sit
This guide covers five official pay clocks from state sources. The Texas rule defines a specific month-end boundary for highway work. Florida and Ohio share one later section, North Carolina and Minnesota appear in the reference table and the comparison table, and the FAQ separates calendar days from business days. Do not mix business days with calendar days when reading these rules. Each clock applies to a specific type of contract and agency. Copy the clock that matches your current paying agency onto the estimate. Write the publisher name beside the date. This keeps your price locked to the correct official figure. Use the reference table to verify the numbers. The next section details the Texas estimate cutoffs.
Estimate dates from the state transportation manual
When pricing work under the Texas Department of Transportation, the estimate timeline begins with the monthly cut-off. Districts may establish cut-off dates prior to the last working day, according to Texas Department of Transportation. This specific deadline anchors the start of the payment cycle for the month's work.
Mobilization payments follow a distinct sequence tied to project acceptance. This step releases a specific portion of the mobilization lump sum bid item once the project reaches that acceptance milestone.
The final financial close-out has its own strict window. This timeframe ensures the last portion of the mobilization funds is accounted for promptly after the project concludes.
Administrative reporting also has a defined deadline that runs from FE approval. Local participation reports (if applicable), federal-aid project forms, and Statements of Cost must be submitted to the Financial Management Division, Accounting Management Section, no later than 60 calendar days after the FE approval, according to Texas Department of Transportation. These documents track the project's cost structure and participation details within that specific period.
State clocks for local government and contractor bills
Florida's Chapter 218 Section 735 - 2025 Florida Statutes - The Florida Senate sets specific business-day deadlines for local governmental entities. When an agent must approve the payment request or invoice before it is submitted to the local governmental entity, payment is due 25 business days after the day the payment request or invoice is stamped as received, according to The Florida Senate. If an agent need not approve the payment request or invoice submitted by the contractor, payment is due 20 business days after the date on which the payment request or invoice is stamped as received, according to The Florida Senate. The statute also notes that if the payment request or invoice is not rejected within 4 business days after delivery of the overdue notice, the payment request or invoice shall be treated as accepted, except for any portion that is fraudulent or misleading, according to The Florida Senate.
Ohio's Section 4113.61 - Ohio Revised Code | Ohio Laws addresses contractor payments to subcontractors and material suppliers. If a subcontractor or material supplier submits an application or request for payment or an invoice for materials to a contractor in sufficient time to allow the contractor to include it in the contractor's own pay request submitted to an owner, the contractor, within ten calendar days after payment from the owner for improvements to property, shall pay to the subcontractor or supplier, according to Ohio Laws. The code further states that if a contractor, subcontractor, material supplier, lower tier subcontractor, or lower tier material supplier has not made payment in compliance with division (A)(1), (2), (3), (4), or (5) of this section within thirty days after payment is due, a subcontractor, material supplier, lower tier subcontractor, lower tier material supplier, or laborer may file a civil action to recover the amount due plus the interest provided in those divisions, according to Ohio Laws.
A filled reference table of the pay clocks
The table below lists the five official pay clocks, with the publisher named in each row.
Illustrative example of one estimate month
Suppose one highway job's work falls in a single month. Copy 10 as the earliest pay day in the next month, 25 as the estimate cut-off, and 2 days before that cut-off for the paperwork. Copy 7% of the mobilization lump sum bid item at acceptance and 3% on the final estimate within 60 days. For a local invoice that an agent must approve first, copy 25 business days, or 20 business days when no agent approval is needed. When a supplier's bill was submitted in time to join the contractor's pay request, copy 10 calendar days after the owner pays. These figures only show how the clocks line up on one estimate.
What these clocks do not decide
A day count in a pay clock is not an interest rate. Interest is a different rule on a different reading, so do not turn a day count into an interest percent.
The clocks also do not apply to every job. Keep each rule's full conditions together when you copy it, rather than copying a broken excerpt. Do not invent a pay date when the clock you copy does not match the job on the estimate.
For those organized under section 471.59, the standard payment period is within 45 days of the date it is received, according to Minnesota Office of the Revisor of Statutes. For municipalities whose governing boards do not regularly meet at least once a month, the standard payment period is defined as 45 days after the goods or services or the invoice for the goods or services are received, whichever is later, according to Minnesota Office of the Revisor of Statutes. Under G.S. 143-134.1, the balance due prime contractors shall be paid in full within 45 days after respective prime contracts of the project are accepted by the owner, certified by the architect, engineer or designer to be completed in accordance with terms of the plans and specifications, or occupied by the owner and used for the purpose for which the project was constructed, whichever occurs first, according to North Carolina General Assembly.
Copy the matching clock today
Copy the clock that matches today's paying agency onto the estimate, and write the publisher beside it. Before you lock the price, read public bid labor checks, a construction estimate audit, and wage provisions on a public bid.
Related guides: Public construction bid requirements: 9 rules for prices · Check 7 material storage rules for site safety compliance · Power tool safety: check 8 rules before site work.
FAQ on construction pay clocks
Which date is a calendar day?
The calendar-day measures are Ohio's ten days after the owner pays, the Texas 10th day of the following month, and 60 calendar days after FE approval. Ohio rules specify that payment goes to the subcontractor or material supplier within ten calendar days after the owner pays for the property improvements, if that party submitted in time to be included in the contractor's own pay request, according to Ohio Laws. Texas regulations state that the department may not pay a contractor before the 10th day of the month following the work month, according to Texas Department of Transportation.
Which date is a business day?
Florida statutes define payment as due 25 business days after the payment request is stamped as received if an agent must approve it first, according to The Florida Senate.
When mobilization remainder is paid
At final project acceptance (DCO acceptance), a DWR pays the contractor the remaining 7% of the mobilization lump sum bid item, and within 60 days of final acceptance the final estimate pays the remaining 3% mobilization and any additional pay item adjustments, according to Texas Department of Transportation.
What Minnesota's two periods are
Minnesota sets a 35-day standard payment period for municipalities whose governing boards meet at least once a month, according to Minnesota Office of the Revisor of Statutes. For municipalities whose boards do not meet monthly, the period is 45 days after the goods, services, or the invoice are received, whichever is later, according to Minnesota Office of the Revisor of Statutes.
Which paying party does each clock name?
Texas names the department for highway improvement, construction, or maintenance, Florida names a local governmental entity, and Ohio names a contractor paying a subcontractor or material supplier. North Carolina names the balance due prime contractors. Minnesota names municipalities whose governing boards meet at least once a month, municipalities whose boards do not meet at least once a month, and those organized under section 471.59.