Under N.C.G.S. § 22C-106, the general contractor must pay subcontractors within 15 days after receiving payment from the owner. If the owner has not paid within 45 days of the sub’s invoice, interest at 1% per month and attorney fees are available. Your subcontract should mirror these statutory deadlines so that late payments automatically trigger the statutory interest and remedies without negotiation.

North Carolina does not cap retainage by statute on private construction; retainage is negotiable. On public projects under N.C.G.S. § 22C-112, retention cannot exceed 5%. Your agreement should specify the exact retainage percentage, the release schedule (typically at substantial completion and final completion), and payment of statutory interest on withheld retainage.

While North Carolina has not enacted a blanket statutory ban on pay-if-paid clauses, courts and statutes in most states treat "pay-when-paid" as a reasonable timing provision rather than an absolute condition. Check North Carolina General Statutes Chapter 44A (North Carolina Lien Law) and Prompt Pay at N.C.G.S. § 22C-100 et seq. (public and private prompt pay) for specific restrictions, and make sure your subcontract states that payment from the owner is not an absolute condition precedent to your right to be paid.

North Carolina does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Under N.C.G.S. § 44A-21, a waiver of lien rights is effective only to the extent of payment actually received. Never sign an unconditional waiver until payment has actually cleared your bank account, and make sure your waiver identifies the specific billing period and amounts to avoid losing lien rights on future work.

North Carolina under N.C.G.S. § 22C-4 voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct. Always read the indemnification clause carefully — even in states with anti-indemnity statutes, "broad form" indemnity for joint negligence is typically still enforceable.

North Carolina requires filing a lien within 180 days after the last work or materials were furnished, followed by foreclosure within 2 years of filing. North Carolina does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to lien. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.