Prompt payment laws

Prompt payment laws set deadlines for paying invoices and pay applications and generally provide for interest when payment is late. The federal Prompt Payment Act applies to federal agencies, which generally must pay a proper invoice within a stated period or owe interest, and it carries requirements down to how primes pay their subs on federal construction. Most states have their own prompt payment statutes for public work, and many have them for private construction as well, with different deadlines, interest rates and conditions.

These laws usually run from receipt of a proper or approved invoice, so paperwork problems can delay the clock rather than trigger interest. The rules vary widely by state and project type and are amended often.